What You Need To know About Filing Taxes in Michigan

There's a time of year many of us dread, and I am one of them. Yes, it's tax filing season. It will start later than usual this year and be a bit different too with the pandemic. And if you worked from home, received a relief payment, took on some extra work, or filed unemployment benefits here are some thing you need to know says woodtv.com.

And here is another question: what happens if you are on unemployment? Some states do not tax unemployment, but unfortunately Michigan does according to kiplinger.com.  hey also have all you need to know about Michigan taxes.

Unemployment benefits are taxable income, which may surprise some filers. Workers are not required to have federal taxes withheld from their benefit payments. While they are given the option to have it withheld, few opt to. Additionally, unemployment benefits are always subject to federal taxes, but a handful of states do not tax it.

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The economic impact payments sent to millions of Americas are not taxable income which is good news for most. But people who did not get their payments, or received less than they were due, can get the proper amount by claiming the Recovery Rebate Credit on their 2020 taxes. I had to dip into my 401K to help my daughter get through college when I was unemployed, and that is gonna sting filing this year.

To be honest since I did collect unemployment last year before I joined WITL, I was hoping state and federal would give us a pass on taxing unemployment benefits for everyone.  Would have been a good idea with many struggling the last year because of COVID-19.