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

Last updated: June 17, 2024
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$10,200 in tax free unemployment, $3,600 or more for parents: New tax breaks you should know
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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.

Want more information? 

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?

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Beverly Kozol-Tattlebaum
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I have not received Stimulus 3. I've called, sent a "lost" form and copies of my tax rebate info, computer finding that it was delivered, April, 2021 altogether to IRS in Andover. How do I resolve this? It's now 6 weeks. Beverly K-T

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Lloyd J Ford Jr
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Group Leader at General Motors

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.

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Gerry Curington
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Project Manager at Hartmarx

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.

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Heidi Kulon
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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 ?!?

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

3y
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Melissa Cvelbar
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Medical at Medical

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

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Jennifer Richard
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Can i gett mortgage help if i am still employed

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Jessica Sikora
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Owner Manager at Majestic Cleaning

I never received anything

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Christina Casso
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Supervisor Manager at Burkes Outlet

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

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Maria Shannon
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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

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