Stimulus Bill Update: Tax Free Unemployment Benefits (Tax Season Check Up)

The new Stimulus packaged was passed 50-49 with the Democrats winning to push the bill forward.
However, there are some changes to the bill as it relates to unemployment benefits.

This new proposed Stimulus package is calling for the reduction of the Federal Stimulus unemployment benefit from $400 to $300. Instead of ending in August of 2021, this unemployment supplement would be extended to Oct 2021

Now there is a new proposal in the bill to exclude $10,200 of income for people who received unemployment benefits for people who made $150,000 or less. This new measure will help to give some tax relief to those who were surprised that they had to pay income taxes on unemployment benefits.

For those that did receive unemployment benefits, I would recommend that they wait to file your taxes until all the potential changes to this stimulus bill are finalized and signed off by President Biden. The Ration for delaying filing your tax returns is to avoid any need to amend your tax returns once Congress finalizes all the tax law changes

source