Maximizing Unemployment Benefits: Tax Implications & Tips

Dr. Friday Tax Tips
Dr. Friday Tax Tips
Maximizing Unemployment Benefits: Tax Implications & Tips
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In this episode of Dr. Friday Tax Tips – One Minute Moment, Dr. Friday, a seasoned tax expert and president of Dr. Friday’s Tax and Financial firm, delves into the tax implications of the new unemployment benefits introduced by the act passed on December 21, 2020. She explains the additional $300 weekly benefit and emphasizes the importance of understanding that these unemployment benefits are taxable. Dr. Friday offers practical advice on managing withholdings to avoid IRS issues, especially crucial for those relying on these benefits as their primary income source. For more insights and assistance, visit www.drfriday.com and tune in to the Dr. Friday call-in show every Saturday afternoon from 2 to 3 p.m. on 99.7 WTN.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial firm. To get more info go to www.drfriday.com. This is a one-minute moment.

Under the new act that passed on the 21st of December 2020, many people started to qualify for additional unemployment benefits. That would have been a $300 additional weekly deduction or income for you. Remember, unemployment benefits are taxable so you want to make sure that you’re having withholdings come out unless that is the only income you’re going to have for the whole year, which is a little hard to tell when it’s only first quarter. So I would always suggest having at least a minimum amount of tax come out so you don’t end up with having IRS issues just because you’re trying to survive when you’re unemployed. If you need more information you can go to www.drfriday.com.

You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.