The agency made an update on the tax exemption for unemployment benefits in Biden’s bailout on Wednesday and said it will recalculate taxes for people who received unemployment benefits in 2020 and all
Because of theAccording to the Bureau of Labor Statistics, 23 million Americans filed for a pandemic for unemployment last year. Below the , or PUA, created under the CARES Act last March, this included those fired from their jobs, as well as handymen, contractors, and self-employed workers who would not normally qualify for unemployment insurance.
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“This new clarification from the IRS is good news for the millions of taxpayers affected, but it can still be confusing,” said Mark Steber, Jackson Hewitt’s chief tax information officer. Some taxpayers may have questions about the timing of a payment and whether it will come in a check or other form. The IRS is still clarifying these and other questions related to the newly announced program. Once taxpayers have their automatic payments made In the coming weeks and months, it may be a good idea to check with a trusted tax authority to make sure the IRS has calculated their amount correctly. ”
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