Wednesday, October 5News That Matters
Shadow

Tag: unemployment

IRS refunds will start in May for $10,200 unemployment tax break

Finance
Samuel Corum/Bloomberg via Getty ImagesThe IRS will start issuing tax refunds in May to Americans who filed their returns without claiming a new break on unemployment benefits, the federal agency said Wednesday.The American Rescue Plan waived federal tax on up to $ 10,200 of unemployment benefits, per person, received in 2020. Households with $ 150,000 or more in income are not eligible for the tax cut.President Joe Biden signed the $ 1.9 trillion relief law during tax season, on March 11.More from Personal Finance:A third of people don't know if they'll get a tax refund or owe moneyTax-refund phishing scam targets college students and staffSenate Dems propose capital gains tax at deathTaxpayers eligible for the tax break were left wondering if they should file amended tax returns to cl...

Congress wants to waive taxes on unemployment. Some states may not

Finance
Daniel Acker/Bloomberg via Getty ImagesCongress may soon offer a tax break to unemployed Americans. States may not be so generous.The Senate passed a $ 1.9 trillion Covid relief bill on Saturday that waives tax on up to $ 10,200 of unemployment benefits per person received in 2020.President Joe Biden is expected to sign the legislation this week after it's passed by the Democrat-led House of Representatives.But the tax policy, which applies to households that made less than $ 150,000, is only a break on workers' federal income taxes.More from Personal Finance:American Rescue Plan creates a tax headache for the joblessHere's how a $ 300 and $ 400 unemployment boost compareSmallest businesses can still apply for a PPP loanMore than half of states levy an income tax on unemployment benef...

Democrats want to send more unemployment benefits. Some workers never got the last round

Finance
Volunteers load shopping bags with food assistance for laid off workers at a food distribution event on Dec. 12, 2020 in Orlando, Florida.Paul Hennessy/NurPhoto via Getty ImagesDemocrats are poised to send more unemployment benefits to laid-off workers. Meanwhile, some workers are still waiting on the last tranche, authorized months ago.A $ 900 billion Covid relief bill signed Dec. 27 extended jobless benefits to March 14 and raised them by $ 300 a week.In Wisconsin, officials estimate self-employed and gig workers won't get that extra aid until at least April 21 — almost four months later.Zoom In IconArrows pointing outwardsOther workers who had exhausted their state benefits just began receiving the extended aid on Thursday, according to Wisconsin's Department of Workforce Development....

The unemployment labyrinth may have killed this musician’s dream

Finance
The Going Jessies. Derek Wood (center), Angela Paradis (right) and James Breeding (left)Photo: Derek WoodDerek Wood was about to achieve a lifelong dream. Unemployment benefits may prove to be his foil.Wood, 47, a guitar player and songwriter from the Little Rock, Ark., area, who sings with a soulful country-blues croon, quit his job in December to pursue music full-time.The time seemed right. His band, The Going Jessies, was playing more at popular local joints and doing more multi-day road tours. The three-piece group — which includes Wood's partner, Angela Paradis — released its first full album in 2019.That dream is slipping away.Derek Wood, guitarist and vocalist for The Going Jessies, a band based near Little Rock, Arkansas, and Angela Paradis, bassist and vocalist.Photo: John Shute ...

Extra unemployment benefits may be delayed for weeks, even if Congress passes Covid bill

Finance
Bill Clark | CQ-Roll Call, Inc. | Getty ImagesCongress is scrambling to finish work on a bipartisan Covid relief bill that would offer additional unemployment benefits and other assistance before a financial cliff looming at month's end.Yet out-of-work Americans may wait weeks to receive that aid, even if lawmakers pass legislation soon. The delay could be as short as a week or two into January or a much longer period extending into February, according to unemployment experts.More from Personal Finance:Watch out for this $ 1,200 stimulus check scamThese programs may help Americans who lose unemployment benefitsThe eviction crisis could increase the spread of CovidMany states use antiquated computer systems that make it difficult to code in new rules quickly. States are also contending wit...