ah winter snowstorm in the nation's capital will not delay President Joe Biden's efforts to provide coronavirus relief this morning, scheduled to meet Republican lawmakers offering a counterproposal to his $1.9 trillion plan. 10 Republican senators announcing their idea for a smaller package at a $600 billion price tag. The downsized GOP plan includes direct payments for families who need assistance The most extends federal unemployment benefits and $160 billion for vaccines and supplies for COVE in 19 testing and treatment. We really want to help those who need it the most. And at a time of unprecedented deficits and debts, we need to be sure this is targeted and in Biden's relief package. $1400 stimulus payments, ah $15 minimum wage increase, enhanced unemployment aid assistance for small businesses, funding for states, schools and childcare and increased funding for vaccines. His first responsibility is president is to help take care of the families who need it to get his arms wrapped around this covert crisis and end it and to get our schools open. And that's what the plan is all about. Aiming to unite a very divided Congress. The White House says Biden is open to some form of negotiation for the relief package. He is very willing, UH, to meet with anyone, um, to advance the agenda. The president may consider reducing stimulus checks for families making more than $150,000 per year, a senior administration official tells CNN, but won't budge on unemployment insurance, access or funding for safely reopening schools. We hope that we can move forward in a bipartisan way with our Republican colleagues cooperating. But we need big, bold action, and if we can't move forward with them, we'll have to do it on our own. Senator Bernie Sanders, saying he thinks Democrats have enough votes to pass Biden's coronavirus relief package through reconciliation a special legislative process that can allow the Senate to push the legislation through with a simple majority. I have differences and concerns about this bill, but at the end of the day we're going to support the president of the United States, the White House, stressing Biden will not sign off on a plan that falls short of what he believes to be acceptable writing in a statement, as leading economists has said the danger now is not doing too much. It's doing too little. Americans of both parties are looking for their leaders to meet the moment. If we don't act now, the cost of that is going to be greater going forward.
If you received unemployment last year, you could be in for a surprise at tax time depending on where you live
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Updated: 10:43 AM CST Feb 1, 2021
Tens of millions of Americans collected unemployment benefits for at least some period of time last year due to the pandemic's hit on the economy.After the stress of losing their job and figuring out how much their unemployment check would cover, chances are good taxes weren't top of mind for too many people.Nevertheless, unemployment compensation is treated as taxable income both by the IRS and by most states. (The exceptions are Alabama, Alaska, California, Florida, Montana, Nevada, New Hampshire, New Jersey, Pennsylvania, South Dakota, Tennessee, Texas, Virginia, Washington and Wyoming.)But it's up to you to decide whether to pay taxes on the money upfront or file estimated taxes on it quarterly."Tax withholding from unemployment compensation is voluntary at both the federal and state level," said Julie Sforza-Smith, program manager at The Tax Institute of H&R Block.Typically, when you apply for jobless benefits, states will give you a form to fill out if you want taxes withheld. But, according to the IRS, many people don't opt for tax withholding, nor do they pay quarterly.In that case, the income taxes owed will be assessed at tax time.So some people may be in for a "negative surprise" when they do their taxes this year, said Elaine Maag, a principal research associate of the Urban-Brookings Tax Policy Center.That may be especially true for anyone who ended up making more on unemployment than they did while working, thanks to the $600 per week federal supplement to unemployment benefits that was in effect from April through July. That was paid on top of one's state unemployment benefit, which averages $380 a week. In those cases, especially if someone had other sources of household income, such as a spouse's paycheck, their total tax liability may be higher than normal."It's going to be a big surprise for many people," Maag said.But the net effect may not mean they have to write a check to the IRS when they file their tax return. Instead, they may just see a smaller refund than they expected because their increased income may reduce their eligibility for large tax credits, such as the refundable Earned Income Tax Credit.Last year, 77% of filers got a refund from the IRS, according to data on returns processed by the end of November. And the average refund paid out was more than $2,500.
Tens of millions of Americans collected unemployment benefits for at least some period of time last year due to the pandemic's hit on the economy.
After the stress of losing their job and figuring out how much their unemployment check would cover, chances are good taxes weren't top of mind for too many people.
Nevertheless, unemployment compensation is treated as taxable income both by the IRS and by most states. (The exceptions are Alabama, Alaska, California, Florida, Montana, Nevada, New Hampshire, New Jersey, Pennsylvania, South Dakota, Tennessee, Texas, Virginia, Washington and Wyoming.)
But it's to decide whether to pay taxes on the money upfront or file estimated taxes on it quarterly.
"Tax withholding from unemployment compensation is voluntary at both the federal and state level," said Julie Sforza-Smith, program manager at The Tax Institute of H&R Block.
Typically, when you apply for jobless benefits, states will give you a to fill out if you want taxes withheld. But, according to the IRS, many people don't opt for tax withholding, nor do they pay quarterly.
In that case, the income taxes owed will be assessed at tax time.
So some people may be in for a "negative surprise" when they do their taxes this year, said Elaine Maag, a principal research associate of the Urban-Brookings Tax Policy Center.
That may be especially true for anyone who ended up making more on unemployment than they did while working, thanks to the $600 per week federal supplement to unemployment benefits that was in effect from April through July. That was paid on top of one's state unemployment benefit, which averages $380 a week. In those cases, especially if someone had other sources of household income, such as a spouse's paycheck, their total tax liability may be higher than normal.
"It's going to be a big surprise for many people," Maag said.
But the net effect may not mean they have to write a check to the IRS when they file their tax return. Instead, they may just see a smaller refund than they expected because their increased income may reduce their eligibility for large tax credits, such as the refundable Earned Income Tax Credit.
Last year, 77% of filers got a refund from the IRS, according to data on returns processed by the end of November. And the average refund paid out was more than $2,500.
