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Are unemployment benefits fully taxable in 2021?

Greta
Level 9

If taxable, will this mess with the new-and-improved earned income credit?

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2 Comments 2
BobKamman
Level 15

For now, yes.  It might be changed with legislation this year, or maybe by March of next year.  You just never know.  And since EIC depends on AGI, it makes a difference.  

TaxGuyBill
Level 15

@BobKamman wrote:

or maybe by March of next year. 


 

You must be an optimist.   🙂  With as incompetent as Congress is, I think March is being optimistic.