Millions of unemployed Americans may be faced with a surprise tax bill next year.
The IRS requires Americans to report unemployment benefits, including the six hundred dollars a week some recently received under the federal government’s CARES Act. That's news to many. According to a recent survey, 37 percent of Americans thought unemployment money was not considered taxable income. Financial expert Bill Dendy says those Americans are in for a surprise.
“This is going to create some concerns for a lot of people as they file their taxes. Now, the way to resolve that is to request a portion of your unemployment check to go to the federal government in withholding,” Dendy explained.
Even then, he says that's usually only 10 percent, which may not be enough. He urges you to contact your unemployment office or a financial planner if you are not sure the right steps for you.