More than a dozen states aren’t offering a new tax break on unemployment benefits.
That means taxpayers will need to pay state tax on benefits they received last year, absent any forthcoming changes to state law.
The American Rescue Plan waived federal tax on up to $10,200 of jobless aid per person collected in 2020. The $1.9 trillion Covid relief measure limits that break to individuals and couples whose income was less than $150,000.