- 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.