The American Rescue Plan extended employment assistance, starting in March 2021, and waived some federal taxes on unemployment benefits to assist those who lost work due to the COVID-19 crisis.
Across the nation, millions of Americans lost their jobs in the wake of the COVID-19 pandemic and, as a result, claimed unemployment benefits. The American Rescue Plan extended employment assistance, starting in March 2021.
In addition, the American Rescue Plan waives federal income taxes on the first $10,200 of unemployment benefits received in 2020 by individuals with adjusted gross incomes less than $150,000. The tax relief extends to both workers who received benefits through federal unemployment programs as well as those who received traditional benefits through their state unemployment insurance fund. This law will provide tax relief for Americans who lost their jobs and utilized unemployment benefits last year – allowing millions of workers to focus their benefits on covering essentials during the COVID-19 pandemic.