$1,400 stimulus check or unemployment tax relief? American Rescue Plan creates a real tax headache for the jobless
The $1.9 trillion American Rescue Plan has inadvertently created a conundrum for the unemployed this tax season. The pandemic aid measure, which passed the Senate on Saturday, offers $1,400 stimulus checks and waives federal taxes on a portion of unemployment benefits received last year. But that raises an important question for some taxpayers who lost their jobs in 2020: Should they file their tax returns now in order to get a bigger stimulus check, or file later to avoid a big tax bill...
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