Not like the federal authorities, RI will absolutely tax unemployment advantages

PROVIDENCE, RI (WPRI) – All Rhode Islanders who received unemployment benefits in 2020 must pay state taxes on it.

Unemployment benefits are usually taxable income, but federal lawmakers added an exemption to the US bailout plan, which was added to law earlier this month.

Erica Guatieri, a local public accountant (CPA), said under the plan that recipients will not have to pay federal taxes on “the first $ 10,200 of unemployment benefit received if they adjusted gross earnings less than $ 150,000”.

12 Answer: Will RI have an unemployment tax break like the federal government does?

On Sunday, the RI Treasury Department released a press release stating that the state’s tax law will remain unchanged, which means that unemployment benefits will be taxed as usual.

Guatieri reminded the Rhode Islanders that they must include the federal exemption amount back in their state income.

“When you returned to Rhode Island, you would add $ 10,200 to your Rhode Island taxable income so that it is now taxed at the Rhode Island level,” she said.

If you received unemployment benefits in 2020 and have not yet submitted your taxes, Guatieri will have to wait as adjustments to the tax return software systems will have to be made.

“Rhode Island is still working on the form. You have to adjust their shape for this change, ”she explained. “You didn’t really say when this form would be ready. You then have to give it to basically all of these tax software companies so they can use the forms to customize the forms for all of us. “

For those who have received and have already filed benefits, Guatieri says they will need to amend their tax returns to include that income.

The deadline for filing taxes has been extended to May 17, and it is unclear if anything will change before that date.

Community focus: Deputy Director, Department of Labor and Education Matt Weldon