Many Americans may have a direct hit to their income when they file their 2020 taxes. A recent survey conducted by Jackson Hewitt Tax Service found that 38 percent of Americans receiving unemployment benefits were unaware that the money is taxable — and nearly two-thirds of those individuals (that’s approximately 25 percent!) had not set aside or withheld money from the payment for their 2020 federal income taxes.
If Congress really wanted to help the American people, it could declare at least the extra $300-$600 in federal unemployment benefits received nontaxable for 2020. There is precedence: $2,400 of unemployment benefits received in 2009 were declared exempt from federal taxes in the 2008-2009 economic downturn.
Let’s hope the new administration, or even our local congressional representative, will fix this and help the average American to lessen the tax burden during this pandemic.
