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Tax Relief for 2020 Unemployment Benefits

This act aims to exempt a portion of unemployment benefits received in 2020 from income taxes. This means individuals who received unemployment benefits last year may pay less in taxes or receive a larger refund. It provides a direct financial benefit to many citizens impacted by the pandemic.
Key points
Exemption of up to $10,200 of unemployment compensation received in 2020 from income tax.
The change applies to tax filings for the 2020 tax year, potentially affecting tax refunds or liabilities.
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Additional Information
Coronavirus Unemployment Benefits Tax Relief Act
Print number: HR 685
Sponsor: Rep. Axne, Cynthia [D-IA-3]
Process start date: 2021-02-02