2021 Tax Year in Review
After another rollercoaster of a year, now is a good time to consider the tax changes affecting 2021. The most significant changes for individuals came from American Rescue Plan Act enacted in March 2021 and the Consolidated Appropriations Act that was passed in December 2020.
IRS Announces Another Round of Unemployment Tax Refunds
The Internal Revenue Service disclosed it’s not done issuing refunds for tax paid on certain unemployment benefits received in 2020. So far, the IRS has completed four rounds of refunds due to the unemployment compensation exclusion, including 9 million individual refunds totaling over $10 billion.
Are Unemployment Benefits Taxed?
With so many people out of work during the COVID-19 pandemic, and some rule changes increasing the number of people who qualify for unemployment benefits, do unemployment benefits need to be included in your gross income for tax purposes?