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March 18, 2021
Question

Are Washington State unemployment benefits taxable?

  • March 18, 2021
  • 1 reply
  • 0 views
I read that the stimulus bill made the first $10,200 of unemployment insurance income untaxable, but Turbo Tax does not reflect that.

1 reply

March 18, 2021

IRS has not yet got their systems updated and shared the information with the software developers on implementing that part of the American Rescue Plan.

 

They have been extremely busy issuing stimulus checks and updating the Internal Revenue Tax Code on the changes in the law.  They are still processing 2019 paper filed returns.

 

If you haven’t filed your 2020 taxes yet and would like to receive progress status updates, please sign up here

 

Washington does not have income tax, so the new law doesn’t impact your state return. TurboTax calculations are correct and up-to-date for your state.