13 min
Listener Question: “Do you have to pay taxes on unemployment?” Money Rehab with Nicole Lapin
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- Business
Nicole gives a listener advice on what to do about taxes if you filed for unemployment last year, and debunks Dave Ramsey’s statements that people collecting the stimulus check are "screwed." Nicole says: You are not screwed.
From This Episode:
Report your unemployment benefits on your Federal Tax Return, which will say “Form 1040”.
You’ll need Form 1099-G, which you should have received from your state. You can see how much you received in unemployment benefits in Box 1.
You’ll need to report this amount on your tax return on line 7, Schedule 1.
You also have to report any taxes that were withheld from your unemployment benefits… to find that number, look at that trusty Form 1099-G again… the amount of taxes that were withheld from your unemployment benefits is in box 4. You report that amount on line 25b of your tax return.
If you have an income of $72,000 or less, you can file for free using the IRS Free File program.
If you’re a veteran, check out MilTax for free filing options.
Find out more about VITA here. VITA is an organization that offers free tax coaching to folks in low-mid income brackets, as well as persons with disabilities, the elderly and individuals with limited English proficiency who need assistance in preparing their taxes.
Learn more about your ad-choices at https://www.iheartpodcastnetwork.comSee omnystudio.com/listener for privacy information.
Nicole gives a listener advice on what to do about taxes if you filed for unemployment last year, and debunks Dave Ramsey’s statements that people collecting the stimulus check are "screwed." Nicole says: You are not screwed.
From This Episode:
Report your unemployment benefits on your Federal Tax Return, which will say “Form 1040”.
You’ll need Form 1099-G, which you should have received from your state. You can see how much you received in unemployment benefits in Box 1.
You’ll need to report this amount on your tax return on line 7, Schedule 1.
You also have to report any taxes that were withheld from your unemployment benefits… to find that number, look at that trusty Form 1099-G again… the amount of taxes that were withheld from your unemployment benefits is in box 4. You report that amount on line 25b of your tax return.
If you have an income of $72,000 or less, you can file for free using the IRS Free File program.
If you’re a veteran, check out MilTax for free filing options.
Find out more about VITA here. VITA is an organization that offers free tax coaching to folks in low-mid income brackets, as well as persons with disabilities, the elderly and individuals with limited English proficiency who need assistance in preparing their taxes.
Learn more about your ad-choices at https://www.iheartpodcastnetwork.comSee omnystudio.com/listener for privacy information.
13 min