The 2020 tax season is officially underway, and the millions of Americans who collected unemployment benefits last year due to the coronavirus pandemic may be in for a surprise.
That unemployment income is taxable, and if you didn’t have money set aside or withheld for those taxes, it could reduce your refund or even lead to a bill.
This might be particularly unexpected for independent contractors and self-employed people who normally aren’t eligible for state benefits but may have received Pandemic Unemployment Assistance through the CARES Act.
