Community property and tax exempt unemployment compensation

Becoming suddenly unemployed was an unfortunate first-time experience for many during the COVID pandemic. While the worst of it seems to be behind us, at least in the United States, there are many ongoing reasons for losing one’s employment. Preserving your income and assets during periods of unemployment is important and that includes doing what …

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Identity theft and form 1099-G

During COVID, millions of Americans lost their job or worked fewer hours, prompting many to apply for unemployment benefits. During tax season, people received form 1099-G from their respective states presenting the amount of unemployment benefits they received in 2020. Some people received a 1099-G, but had not applied or received unemployment benefits. The IRS …

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IRS refunding taxes paid on pandemic unemployment

Good news for those of you who collected pandemic unemployment last year and already filed your 2020 taxes. You might be getting a refund! The American Rescue Plan Act enacted in March made unemployment benefits up to certain thresholds tax free. The IRS recently announced beginning in May it will begin issuing automatic refunds for …

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The new stimulus act – What’s in it for you?

The American Rescue Plan of 2021 was signed into law today. Here’s a summary of what’s included. Round 3 of Stimulus Payments Subject to the below limits, individuals will receive a $1,400 payment, couples $2,800. Also, in this round dependents receive $1,400, including adult dependents. Similar to the last two rounds of stimulus, payments begin …

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