The pandemic assistance and rescue bill that Congressional Democrats and Joe Biden passed early in his term exempted from income tax the money individuals had received from unemployment compensation in 2020. This was a tremendous relief for those recipients who had not had their estimated tax withheld by their state, and a windfall for those who had and who subsequently received a refund from the IRS.
But pandemic UI lasted through September of 2021. I’ve heard nothing of any effort to grant people whose employment was negatively impacted by the pandemic and who received UI in 2021 the same exemption.
As a freestanding bill I think that even some GOoPers might vote for it, as they’re so vehemently against having people pay taxes (well….against rich people paying taxes, of course.)
Does anyone know of any effort underway to grant 2021 UI recipients the same tax break that was in place for the previous year?