Unemployment numbers surged at the start of theCOVID-19 pandemic,topping out at 14.7% in April 2020.
Even though numbersdecreased in 2021, they’re still above prepandemic levels.
Expanded unemployment benefits, whichended on Labor Day in 2021, provided a lifeline for millions throughout the pandemic.
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Do you have to pay taxes on unemployment?
The IRS considers unemployment benefits “taxable income.
This applies both to standard unemployment benefits and the expanded benefits that were available to some during 2021.
Do you have to pay state taxes on unemployment?
That noted, there are a few states thatwaive unemployment income taxes.
They are:
Indiana and Wisconsin both offer partial exclusions.
How do I know if I already paid taxes on my unemployment benefits?
That noted, it can be devastating to get hit with a big tax bill in the spring.
Your tax questions, answered
