All non-essential businesses are closed which means MANY people are out of work. Yikes. The only silver of hope may be unemployment insurance for many families. In addition, everyone who qualifies for State Unemployment Insurance will also receive an extra $600 per week from the Federal Pandemic Unemployment Fund. This additional amount will be paid through July 31, 2020.
Please understand these funds are taxable. In January 2021, you will receive a Form 1099-G which will summarize your taxable unemployment benefits. Unfortunately, no amount is withheld from these funds for Federal or State taxes which means you may have a tax liability which must be paid by April 15, 2021. Your unemployment benefits will be grouped with your other taxable income to determine the amount of taxes due. We can help you plan for next April by projecting your possible tax liability so you can save the necessary funds.
At this tough time, you may be eligible for other benefits: food assistance, health insurance, low-cost phone, gas, and electricity, low cost auto insurance. Don’t be proud. Take help where you can get it!