INDIANAPOLIS (WISH) – Indiana state has provided more than $ 8 billion in unemployment benefits.
According to the Ministry of Human Resources Development, almost 900,000 people have received unemployment benefits since March last year. At the height of the pandemic, 450,000 people reported unemployment in a week in May 2020, according to the state.
Greg Geisler, a professor at Indiana University, says the federal government has exempted part of unemployment benefits from federal income tax.
“Well, the first $ 10,200 is off income on federal tax returns. In other words, it is not taxable. But Indiana broke away from that federal tax law; You need to add the $ 10,200 to your Indiana tax return, ”Geisler said.
The Indiana tax would be around $ 500, according to Geisler, but that depends on your particular tax situation.
Another problem is the stimulus money. If you haven’t received a stimulus check and don’t qualify for guidelines set by Congress, you can claim that money towards your federal return.
“The reimbursement credit is included in the federal tax return for 2020. The problem with this is that the Internal Revenue Service is concerned that many people are making this claim but have already received all of their stimulus money, ”Geisler said.
Geisler says the IRS is putting aside millions of 2020 returns with the refund balance to verify that the taxpayer hasn’t received the money yet.
“It will likely be months before you look at it and then decide whether you are eligible for the full refund you requested,” Geisler said.
The IRS is still processing millions of returns for 2019 and if you file a paper return for 2020 you won’t expect a refund until later in the summer or possibly early fall.