Some 2020 Unemployment Compensation is Tax Free

In recent months, there have been a number of tax changes that may affect your individual tax bill. Many of these changes were enacted to help mitigate the financial damage caused by COVID-19. Here are two changes that may result in tax savings for you on your 2020 or 2021 tax returns. The 2020 return was due on May 17, 2021 (because the IRS extended many due dates from the usual April 15 this year). If you couldn't file by that date, you could have requested an extra five months to file your 2020 tax return by October 15, 2021. Your 2021 return will be due in April of 2022. Some unemployment compensation from last year is tax free Many people lost their jobs last year due to...