Here are five things it’s crucial that you know if youre receiving unemployment compensation.
Extra jobless benefits will continue through Sept. 6.
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This post refers to the American Relief Plan passed in March 2021. For the most up-to-date info, check out ourrecent tax articles.
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Your weekly unemployment checks wont increase.
The amount of those checks wont change, though.
The original version of the House bill contained a $400 weekly federal boost to state benefits.
The reason for those higher payments is that these workers are typically eligible for lower state unemployment payments.
The first $10,200 of unemployment benefits will be tax-free for 2020.
Many workers have been surprised to discover thatunemployment benefits are taxable.
You should still plan on paying taxes for any compensation you get in 2021.
The bill makes it more affordable to buy health insurance.
COBRA allows you to continue coverage under your former employers plan.
Youre not eligible for government-paid COBRA premiums if you voluntarily left your job.
The bill also makes it more affordable to buy insurance through the Affordable Care Act.
It caps health care exchange premiums at 8.5% of your income.
You could see a gap in unemployment benefits.
State unemployment systems often need time to update and reprogram when benefits are extended.
If a gap does occur, any benefits you were eligible for would be paid retroactively.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
She writes the Dear Penny personal finance advice column.
Send your tricky money questions to[email protected].
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