New Stimulus Bill Means Tax-Free Unemployment Benefits. Here's What to Do if You Already Filed Your 2020 Return
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The $1.9 trillion coronavirus relief bill that passed into law earlier this month is doing a lot for struggling Americans. First of all, the quick signing of the bill means stimulus payments are hitting recipients' bank accounts already. The bill also helps jobless people by boosting and extending unemployment benefits. Plus, it exempts a portion of unemployment income from taxes.
Normally, unemployment benefits are taxed at the federal level and some states impose their own taxes on them as well. But as part of the new relief bill, jobless workers are entitled to a federal tax break on their first $10,200 of unemployment benefits. This rule applies to those with an income of less than $150,000 in 2020.
Source Fool.com
