The American Rescue Plan and Unemployment Income

        Many parts of the 2021 American Rescue Plan (ARP) Act touch almost every aspect of our lives. A previous post discussed the third round of Economic Impact Payments. This is something that many have talked about and are looking forward to. One aspect that many are not talking about is a new tax exclusion for unemployment benefits.

          With the enactment of ARP, it may be possible to exclude $10,200 of unemployment income. This means that Federal income tax would not have to be paid on that amount. State taxes would still apply. There are also overall income requirements that determine eligibility. To find out if you qualify, please talk to your Qualified Tax Professional.

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