Unemployment benefits could cause confusion when filing taxes
Unemployment benefits could cause confusion when filing taxes This tax season, pandemic-related financial assistance could complicate things for millions of Americans. CBS affiliate WNEM-TV's Jamie Sherrod breaks down what's different.cbsnews.com
Tackle your taxes: Tax breaks and credits for self-employed and gig workers
Fortunately, there are some COVID tax breaks and credits for people who fall into those categories. The form is for folks who earned money but didn’t pay taxes on those earnings. AARP volunteer tax preparer Bart Hatfield says those workers should have put aside some money to pay those taxes. AdYou will owe taxes on your unemployment benefitsLook out for your 1099 if you collected unemployment. You will owe taxes.
You may be able to collect more in unemployment benefits
HOUSTON – If you collected unemployment benefits that ran out within the last few months, check your email. Congress approved the funding in December, but it has taken the Texas Workforce Commission time to let people know it is available. You can begin requesting payments again,’” explained TWC’s James Bernsen. “When people stop requesting payments, they’re essentially telling us ‘I don’t need payments. I have a job or don’t need payments anymore,’” said Bernsen.
As Congress feuds over unemployment payments, many jobless Texans are about to lose a $600 weekly benefit
If Congress doesn’t extend the $600 benefit, that will leave many Texans getting anywhere from $69 to $521 per week in unemployment benefits. Republican U.S. Sen. Ted Cruz opposes extending the weekly $600 payments. U.S. Sen. John Cornyn’s office said the Texas senator supports extending unemployment assistance but did not specify whether he supports extending the weekly $600 payments. “And that's not good.”Economists say the end of the weekly $600 payments will lead to Texans with less spending money to fuel an economic recovery. Mason fears what will happen if the weekly $600 payments end Saturday and he is still working reduced hours.
Here’s what to do if your unemployment application was denied
If your application was denied, you may need to resubmit it with additional information about yourself and your past employers. You may also have to file an appeal and back up your claim with documents if needed. You quit your job for non-COVID-19 reasonsFilers won’t be penalized if they had to quit due to COVID-19 concerns or exposure. You left important information out of your applicationMaybe you left out certain job history in your application, or miscounted the earnings you reported. This can conflict with unemployment benefits and will result in a denied application, The Motley Fool reported.