The deadline to submit your taxes to the IRS is quickly approaching, and people are trying to figure out if they’ll owe due to stimulus cash.
Millions of Americans received a stimulus payment this year worth $1,400.
The question is whether you need to pay income taxes on this money, similarly to unemployment benefits.
When will I owe money to the IRS for stimulus related payments?
If you received other stimulus related payments like the child tax credit, unemployment, or emergency SNAP benefits, you could see yourself owing the IRS.
In 2020 the first $10,200 someone made in unemployment was tax free under the American Rescue Act.
That will not be happening for 2021.
The millions who received unemployment this year will need to pay taxes on the funds.
State taxes for unemployment depend on where you live.
Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming do not have state income tax.
Alabama, California, Montana, New Jersey, Pennsylvania, and Virginia do not have unemployment taxes.
Indiana and Wisconsin tax a portion of benefits.
Child tax credits and food stamps are not taxable, but overpayment could result in you owing some or all back.
Taxes are due by April 18, 2022.
You may request an extension by then as well.
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