Will Unemployment Be Taxed in 2022

Unemployment was down significantly last year. Still, 25 million Americans filed for unemployment benefits in 2022

• The Eighteenth Word
• The Seventh Word
• The Sixteenth Word
• The Fifteenth Word
• The Fourteenth Word

The American Rescue Plan Act passed in March waived federal tax on up to $10,200 of unemployment benefits, per person, collected in 2020; however, Congress hasn’t passed a law offering a similar tax break on 2021 benefits.

This means if you collected unemployment benefits in 2021 and didn’t withhold federal tax from benefit payments — or withheld too little — you may owe money this tax season.