Jobcase Team
Official Account
Posted March 16, 2021

$10,200 in tax free unemployment, $3,600 or more for parents: New tax breaks you should know

New tax breaks are offering $10,200 in tax free unemployment plus $3,600 or more for parents, even if you've already filed your taxes this year.
Jobcase Team
Official Account
Follow
29
33
Share
$10,200 in tax free unemployment, $3,600 or more for parents: New tax breaks you should know
Jump to section

Due to the #coronavirus pandemic, many Americans have ended 2020 with less money to spare on taxes this year. Thankfully, tax changes through the third stimulus package ensure that those who have struggled with unemployment and families with children.

Which new tax breaks are available?

Tax free unemployment up to $10,200

Those who collected unemployment for the first time in 2020 could have gotten a tax-time surprise when filing their unemployment earnings this year. Due to the tax on unemployment earnings being a huge strain on already financially burdened taxpayers during the pandemic, changes have been made to lessen the amount that the unemployed have to pay on their earnings.

The tax break makes unemployment earnings tax-free up to $10,200, which could reduce the amount of tax owed for many unemployed tax filers this year.

$3,600 per child for families

For families, the pandemic has meant more expenses on childcare as many families struggle to provide extra resources and food for their homebound children. The new Child Tax Credit provides an essential refund to families based on the amount of children they have provided for in 2020.

For families who plan to collect this benefit, they should be aware of these Child Tax Credit rules and regulations:

  • Married couples with children making under $400k in adjusted gross income (AGI) will qualify.
  • Individuals with children making under $200k in adjusted gross income (AGI) will qualify.
  • Families will receive $3,600 per child under 6 and $3,000 per child older than 6.
  • Families will receive $500 for per child age 17 to 24 in high school or full-time college.
  • There is no limit on the number of children who can be claimed.

When families will receive their money

Families collecting this benefit on their 2020 taxes should be aware that any money disbursed through this credit will come in two waves. Initially, half of the money will be disbursed right away with the rest of a tax filer’s return. Beginning in June 2021, the other half will be disbursed in monthly installments until December 2021.

What if I already filed my 2020 taxes?

If you already filed income taxes for 2020, you can still file an amended tax return to receive these benefits during this tax season. An amended tax return can be filed directly with the IRS


Are these incentives enough? What pandemic tax breaks would you like to see?

29
33
Share
Jobcase Team
Official Account
Follow

Comments

Show Previous Comments
Cheryl Kalmbach

How does this work? I’ve been waiting since November of 2020 for my unemployment.

11w
2
2
2 Likes
Maria Shannon

I don't think you need to amend anything. The IRS will just send you the money back. Mine says I will get it April 15

11w
1
2
1 Like
Christina Casso

Maria Shannon...when did you file? I've been waiting for the IRS to finish "reviewing" my taxes for 2 months

9w
Like
Reply
Jessica Sikora

I never received anything

8w
Like
Reply
Jennifer Richard

Can i gett mortgage help if i am still employed

4w
Like
Reply
Melissa Cvelbar

Not fair for adults who. Never had children!!! Make it so everybody is treated the same!!

4w
2
Reply
2 Likes
Marcy West

Sociologists.PEOPLE NEED HELP WORKED 30YRS 657. IS ALL HAVE TO LIVE GOVERNMENT.SHOULD BE ASHAME

4w
Like
Reply
Heidi Kulon

How come everyone that didn’t work is getting tax breaks , extra money weekly more food stamps , and the ones that stayed working paying taxes didn’t get anything ? See anything wrong here ?!?

3w
1
Reply
1 Like
Gerry Curington

Seniors living on a fixed income certainly need consideration regarding the next stimulus. The cost of living is constantly increasing. Fixed incomes do not increase at a comparable rate.

2w
3
Reply
3 Likes
Lloyd J Ford Jr

Do not understand why it's so hard to find a job but business owners claims that people do not want to return to work? Well, it's not that people do not want to return to work, business owners / Cooperations is hoping to put the unemployed in the position of accepting a below poverty wage or go homeless. Which means the unemployed will need to work two jobs or six - seven days a week to keep a roof over their heads.

2w
2
Reply
2 Likes
Post
Related Articles
6
1
Share
May 6, 2021

A $3,600 "fourth stimulus" is coming for millions of Americans

Elyssa Duncan
Community Specialist
Follow
139
578
Share
Mar 22, 2021

Third stimulus changes that could get you more money

Jobcase Team
Official Account
Follow
9
8
Share
Mar 16, 2021

Third stimulus bill unemployment benefits

Elyssa Duncan
Community Specialist
Follow
27
79
Share
Feb 10, 2021

How to: File unemployment earnings and reduce your tax burden

Janice Reed
Community Specialist
Follow
15
6
Share
Apr 8, 2020

What the CARES Act means to you

Kai Dickerson
Community Specialist
Follow
56
49
Share
Apr 8, 2020

Unemployment Benefits: Overview

Elyssa Duncan
Community Specialist
Follow
24
206
Share
17
6
Share