While unemployment rates have decreased in America with an estimated 6.3 million claims for jobless benefits and the national unemployment rate just under 4 percent due to job loss or being furloughed, these are still unprecedented times and many Americans are struggling financially.
To help provide relief for those impacted by coronavirus there were several coronavirus relief plans that also expanded unemployment benefits in 2020 and in 2021.
- Coronavirus Aid, Relief, and Economic Security Act (CARES) – The first coronavirus relief plan, the Coronavirus Aid, Relief, and Economic Security Act (CARES) passed in March of 2020, expanded who is eligible for unemployment benefits and included a $600 per week unemployment increase for four months.
- Coronavirus Response and Relief Supplemental Appropriations Act of 2021 – On December 27, 2020, unemployment benefits were expanded for the second time under the Coronavirus Response and Relief Supplemental Appropriations Act of 2021. The bill increased unemployment payments by $300 per week and extended the benefits until March 14, 2021. The bill also extended the Pandemic Unemployment Assistance (PUA), which expands unemployment to those who are not usually eligible for regular unemployment insurance benefits. This means that self-employed, freelancers, and side giggers will continue to be eligible for unemployment benefits.
- American Rescue Plan – The American Rescue Plan was the third coronavirus relief plan that expanded unemployment and provided retroactive tax relief. The new American Rescue Plan provided a $300 federal boost to weekly jobless payments and extended two key pandemic unemployment benefits programs through September 6, 2021.
If you are receiving unemployment checks, you may be wondering “what are the tax implications of receiving unemployment?”
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