The pandemic has impacted nearly everyone. Your 2020 tax return could also be impacted. Even if you had a pretty straightforward tax return in the past, it may not be the same this time around as a result of the pandemic. It might be necessary to adjust the way that you report income or you might have to pay additional income taxes that you had not planned for.
So, do you have to pay taxes on unemployment benefits?
The answer is yes, unemployment benefits are taxable at the federal and Vermont state level. Benefits must be reported as gross income on your federal and state income tax returns.
For more Tax Return Considerations, click here.
Davis & Hodgdon Associates CPAs has been assisting individuals and businesses throughout Vermont and New England for more than 30 years so please reach out to us in Williston (802-536-1831) or Rutland (802.775.7132) to talk with a tax professional today to be sure your tax return is in order. You can also email us at [email protected].