FIGHT FOR $600 Unemployment Extension $400 September! Stimulus Update PUA FPUC Unemployment Benefits

We’ve talked about it on the channel before, and with today’s start of tax season, I thought it would be helpful to mention once again that unemployment benefits from most states are considered taxable income and must be accounted for on your upcoming tax return.

Congrats to everyone living in California, New Jersey, Oregon, Pennsylvania and Virginia, as these are the only states that are completely exempt from unemployment taxes.

According to Goldman Sachs: “economists estimated in a recent analyst note that individuals could owe as much $50 billion in unanticipated federal and state taxes.”

Economist Jan Hatzius explained: “These surprise tax bills would reduce tax refunds or possibly even require net tax payments for vulnerable households, which may force some to cut back on spending.”

Fortunately, the economist believes stimulus relief is on the way, stating: “Regardless, the additional stimulus checks we expect to be passed — which are not taxed — should more than offset surprise tax bills for most households.”