Syracuse, N.Y. — The $900 billion Covid relief package passed by Congress in December provides an extra $300 in unemployment payments for 11 weeks.
If you’re collecting unemployment — or will be in the next 11 weeks — there is nothing you need to do to get the extra $300. You’ll get it automatically in your weekly unemployment payment.
But will you have to pay income taxes on that $300 unemployment bonus? Unfortunately, the answer is yes, you will.
The federal governments and states like New York that impose state income taxes treat unemployment payments as income. So you will have to report all of your unemployment benefits, including the extra $300, as income when you file your 2020 tax returns.
The good news is that if you told the state Department of Labor to withhold taxes on your unemployment payments (as you should have), you shouldn’t get hit with a big tax bill on those payments when you file your tax returns.
Rick Moriarty covers business news and consumer issues. Got a tip, comment or story idea? Contact him anytime: Email | Twitter | Facebook | 315-470-3148
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