The government is gonna get some of your money back folks….
Billions of federal coronavirus relief dollars are flowing directly into Americans’ pockets, but will they have to send some of that money back to Uncle Sam come tax time?
The good news: Your stimulus payment is all yours!
The bad news: If you’re out of work, you will owe federal — and possibly state and local — taxes on any unemployment benefits you collect, including the temporary $600 weekly boost approved by Congress as part of its economic rescue package.
And because unemployment benefits count as income, they may also disqualify you from getting food stamps or federal subsides for health insurance policies bought on the Affordable Care Act exchanges. Neither the stimulus checks nor the extra federal jobless payments, however, will affect your eligibility for Medicaid….