• Millions of people received unemployment benefits in 2020 amid the economic fallout from the pandemic.
  • Families also received an additional $600 in weekly benefits up to the end of July 2020, thanks to the CARES Act. Many will owe taxes to the federal government and their state this spring.
  • Generally, unemployment can reduce the value of certain tax credits. Congress created a fix in the pandemic relief act, allowing filers to use 2019’s income to apply for the child tax credit and earned income tax credit on their 2020 taxes.

https://www.cnbc.com/2021/01/13/how-being-unemployed-in-2020-could-lead-to-a-surprise-tax-bill.html

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