This tax break could be used for this year's taxes, and for those who already completed their taxes this year, they can amend them to get the tax exemption. The organization says millions of unemployed workers could find themselves owing money on April 15 Tax Day. To help with this, the same plan that would extend the bonus checks would also allow for the first $10,200 of unemployment benefits to be tax exempt for families with incomes under $150,000. Unemployment checks count as taxable income, but some states didn't withhold federal taxes, according to a report from The Century Foundation. This plan has yet to be passed by the Senate and could still change before it's added to the relief bill.Īnother stipulation discussed is a tax break for unemployed workers.

Instead of $400, the new plan would drop the bonus checks to $300 and have them expire on Sept. The House bill called for $400 bonus checks to last until the end of August, however, because the Senate will be adjourned during that period, there was a plan to extend the payments at a lower amount. It already passed the House of Representatives and is currently in the Senate where the provisions such as a third stimulus check, Child Tax Credit and the eviction moratorium are being debated on.įriday saw some changes to the extension of unemployment benefits. March 14 will be the last day for bonus unemployment checks unless President Joe Biden's $1.9 trillion COVID-19 relief plan gets through Congress before. We refer you to the article about the unemployment provisions in the American Rescue Plan for the latest information. This article refers to the payments established in the relief package passed in December. More federal unemployment checks are still coming.Įditors' note: On Thursday, President Joe Biden signed his American Rescue Plan that will extend unemployment bonus checks to Sept.

How long do checks last before expiring