With the COVID relief bill that recently passed, is the $300 per week in unemployment benefits taxable, by state (CA) and/or federal? I can't find anything.
If so, how would someone have taxes withheld for any entity that requires a tax be paid?
My daughter will be receiving this benefit, but can't find any instructions about taxes/withholding.
TIA
I think they are.
I found a number of news articles warning that the $600 unemployment assistance in the first stimulus package were taxable, just like normal unemployment benefits. And nothing I found about the second stimulus says anything different about the new $300 benefits.
There are a handful of states that don't tax unemployment benefits.
On the other hand, the one-time $1200 checks are not taxable.
All unemployment benefits, including the $600/week and current $300/week, are taxable on your federal return if your income is in various tax brackets. The $1200 stimulus one time payment is not taxable. Most states will deduct for fed. taxes and state taxes if needed.
bw
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