That extra $600/week you got was all yours? Well, not so fast...

That extra $600 per week you got for the pandemic crisis...the government may want a piece of that back!

Tax preparers say millions of Americans who received unemployment benefits during this crisis may not know they could owe the IRS for it when they file next year.  Jobless benefits are subject to federal income taxes, and workers who are collecting for their first time may not know it.  When applying for unemployment benefits, you have the option to have 10% of the payments withheld for federal income taxes. But tax experts said most may not know about the option or how to sign up for it.

According to an online article seen here, tax experts say the unemployment benefit tax problem is "...a bigger issue now because of the volume of people who are unemployed..."

Stimulus checks, by contrast, are not taxable, as they're considered advance payments of a tax credit.

If you already feel your financial situation is out of control...contact us for a FREE CONSULTATION for debt resolution and/or bankruptcy at (731) 423-1888. The law office of T. Verner Smith has helped thousands overcome financial problems, and can help you too. Call today! 

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