Q1. Am I eligible to exclude my unemployment compensation? (added April 29, 2021)Ī1. It depends. Read The Ascent's full review for free and apply in just 2 minutes.These updated FAQs were released to the public in Fact Sheet 2022-39 PDF, December 2, 2022. It’ll allow you to pay 0% interest on both balance transfers and new purchases until 2022, and you’ll pay no annual fee. Offer from the Motley Fool: If you have credit card debt, transferring it to this top balance transfer card can allow you to pay 0% interest for a whopping 18 months! That’s one reason our experts rate this card as a top pick to help get control of your debt. Top credit card wipes out interest until 2022 Its content is produced independently of USA TODAY. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy. The Ascent does not cover all offers on the market. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. This especially applies to people who never got a stimulus payment in 2020 and will be claiming stimulus money on their tax returns via the Recovery Rebate Credit. That way, they can get that money into their bank accounts sooner. That said, those who are due a refund for 2020 should file their taxes as soon as they're ready. While this wasn't the bill's intent, it did end up buying Americans relief on the tax-filing front as well. Once the new stimulus package was passed, however, it became clear that it came with tax implications. Last year, the IRS moved the filing deadline back three months in response to the coronavirus pandemic, but this year, the agency wasn't planning to adjust that deadline at all. The IRS has also moved the tax-filing deadline back one month, so filers now have until May 17 instead of April 15 to submit their returns without facing penalties for being late. (Refunds for paper returns can take twice as long.) Adjusting for this change might push back some refunds, but it'll also eliminate the headache of having to file amended returns. Normally, the IRS issues refunds for electronically filed returns within three weeks. Meanwhile, those who paid taxes on last year's unemployment income and already filed their tax returns may be able to just sit back and wait for their refunds to hit. The agency is also working with tax software providers to update their systems to allow for that tax break. Last week, the IRS released filing instructions for workers who are eligible to claim a tax break on their unemployment income, including a worksheet for filers who submit a paper return. And that could save those who already submitted their taxes a lot of time and hassle. But now, the IRS says it should be equipped to handle adjustments to tax returns relating to this exemption on its own. Originally, some tax professionals thought filers in this situation would need to submit an amended tax return. At that point, a lot of people had already filed their 2020 taxes - without accounting for this new provision. The problem, however, is that the relief bill wasn't signed into law until the middle of March. Getting out of paying taxes on $10,200 of income can be a good thing. Unemployment tax break: IRS tax refunds to start in May for $10,200 unemployment tax break: Here's what you need to know Stimulus check update: When will ‘plus-up’ payments arrive? Answers to your COVID relief questions Normally, all unemployment income is taxable at the federal level, but the new relief bill exempts jobless workers' first $10,200 in benefits for those earning less than $150,000. Not only will jobless workers be entitled to a $300 weekly unemployment boost through early September, but they'll also get a nice break on their taxes. These include $1,400 stimulus checks, enhanced health insurance subsidies, and boosted unemployment benefits. The recently passed $1.9 trillion coronavirus relief bill contains a host of provisions designed to throw struggling Americans a bone. Watch Video: COVID-19: Who is unemployed? The unemployment rate explained
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