Are Unemployment Benefits Taxable?

Dan Caplinger, The Motley Fool
·3 min read
Are Unemployment Benefits Taxable?

The COVID-19 pandemic put millions of people out of work in early 2020. With tax season set to start in mid-February, many people who received unemployment checks in 2020 are about to get a nasty surprise. When you prepare your 2020 federal tax returns, you're going to have to report those unemployment benefits as income to the IRS and probably pay taxes on it.