Yes, That Extra $600 You’ve Been Getting In Unemployment Benefits Is Taxable. Here Is What We Know.

Well, you KNEW it was coming. While the CARES Act Stimulus funds were not taxable earnings from the government, that extra $600 per week in unemployment benefits, IS, indeed, taxable income.

This really shouldn’t be very shocking, because normal unemployment benefits are usually claimed on your taxes every year as earned income, and you end up having to pay taxes on those funds.

It sucks, but it’s the sad truth.

Many people may not have been aware, or paid much attention to the fact that these extra unemployment benefits are taxable funds. If you aren’t prepared for it, here is how it breaks down.

If you have been getting the benefits over the full 14 weeks, that comes out to about $8,400 of taxable income.

You have several options here. You can either pay your estimated tax when quarterly taxes are due, or you can just pay it when all your yearly taxes are due.

The third option, which it might be a little late for, is that you can opt to have some of your funds withheld for tax purposes — which means you basically pay your taxes on them as you go along.

To take this last option, you would have to file a form W-4 V with the government, for voluntary withholding.

You can STILL take this route of filing the form W-4 V, but that would mean you get a bit less than your typical unemployment check when the extra $600 per week goes away.

Whatever happens, you should have a game plan, because the government is going to expect their tax money come next April 15th, AMIRITE?!?