Unemployment and the new stimulus?

[MKCP5]

Hi all

Does anyone have a firm understanding on the new stimulus that is about to be passed and the provisions for unemployment? I had a GREAT job. Never worked so hard but loved what I did. A few months into covid my hours were reduced, then I was put on furlough, then finally laid off. I have been looking for full time work ever since. I am typically finding I am either over qualified or under qualified. Not finding the sweet spot and a new opportunity. I digress.... what I am actually trying to find out is info on the new plan. My unemployment runs out in a few more weeks, but this new bill looks like it will be extended? Will the $ I receive be fed money only? Or will it be an extended state allotment plus fed money? Can't seem to find any clear information. Just trying to plan for the next couple of months in case I don't find anything. Thanks for your help!

 

[GBRforWDW]

Hi all

Does anyone have a firm understanding on the new stimulus that is about to be passed and the provisions for unemployment? I had a GREAT job. Never worked so hard but loved what I did. A few months into covid my hours were reduced, then I was put on furlough, then finally laid off. I have been looking for full time work ever since. I am typically finding I am either over qualified or under qualified. Not finding the sweet spot and a new opportunity. I digress.... what I am actually trying to find out is info on the new plan. My unemployment runs out in a few more weeks, but this new bill looks like it will be extended? Will the $ I receive be fed money only? Or will it be an extended state allotment plus fed money? Can't seem to find any clear information. Just trying to plan for the next couple of months in case I don't find anything. Thanks for your help!

The $300 is federal only. State unemployment is going to be state dependent. Since each state does things differently, I'd call state unemployment office to both ensure you'll receive a smooth transition with the new federal amount and also if you're eligible for an extension on state benefits.

Trust me, I know how terrible that sounds. I once spent 3 hours on hold trying to gather info for my wife and was told they could only help her.

I hope you're able to locate a job situation that works for you soon!

 

[HeatherC]

I think it is for federal only. Certain states may wind up extending theirs, but not guaranteed.

 

[clh2]

Another benefit of the new relief bill is 10,000 of unemployment for 2020 will not be taxed on your federal return. We’ve already filed our tax return, so will be amending the return!
I wish you luck!

 

[Ngwira]

Another benefit of the new relief bill is 10,000 of unemployment for 2020 will not be taxed on your federal return. We’ve already filed our tax return, so will be amending the return!
I wish you luck!

I thought that was for benefits received in 2021?

 

[ruadisneyfan2]

I thought that was for benefits received in 2021?

Me too. I haven't filed yet because we owe. They'll get it on April 15.

 

[clh2]

I thought that was for benefits received in 2021?

Hopefully this article will help explain:
https://www.wsj.com/articles/congre...w-break-for-unemployment-benefits-11615228351

 

[Ngwira]

They also included a provision to waive taxes on the first $10,200 in unemployment income for those who made less than $150,000 in adjusted gross income in 2020.

 

[Ngwira]

Looks like it’s retroactive to 2020. What about 2021?

 

[ruadisneyfan2]

They also included a provision to waive taxes on the first $10,200 in unemployment income for those who made less than $150,000 in adjusted gross income in 2020.

Is $150k for single? or married filing jointly?

 

[CAPSLOCK]

So let me make sure I've got this straight. I pay taxes on my wages, all of my wages. People who received unemployment now don't even have to pay taxes on the money they received while they were getting an extra $600/week for not working? And now additionally get more extra money for not working, for longer?

Meanwhile all the places I drive past are hiring, so we all know there is no shortage of jobs out there for those willing to go to work. Of course, no one wants to actually apply for those jobs because the government is throwing money at people to sit around collecting unemployment.

What a wonderful plan this is to help the economy.

 

[ruadisneyfan2]

Is $150k for single? or married filing jointly?

Never mind. I read the WSJ article. It is $150k per household. It's so nice to live in a high COL state. $150k isn't a lot here in NJ. We won't qualify for it.

 

[MKCP5]

So let me make sure I've got this straight. I pay taxes on my wages, all of my wages. People who received unemployment now don't even have to pay taxes on the money they received while they were getting an extra $600/week for not working? And now additionally get more extra money for not working, for longer?

Meanwhile all the places I drive past are hiring, so we all know there is no shortage of jobs out there for those willing to go to work. Of course, no one wants to actually apply for those jobs because the government is throwing money at people to sit around collecting unemployment.

What a wonderful plan this is to help the economy.

Thank you for expressing your narrow viewpoint so clearly. While I am sure there are people who are out of work who have been "sitting around collecting unemployment" there are thousands of different situations at play here that you have no concept of. I have worked my entire life. Paid taxes my entire life. Paid taxes on my unemployment. Worked my way through college and paid back all of my student loans. Worked for years and years to get where I was in my job. So if you think I will quickly roll over and accept $7 an hour for a minimum wage job that you see advertised on your way to work, no. I won't. For once in my life I am accepting the help that is being offered while I continue to try and find reasonable work that will help me provide for my family. I supplement my unemployment with the savings I worked hard to build that has dwindled while I am out of work due to no fault of my own. There are families who are going hungry today because their unemployment won't even cover their rent, never mind food and electricity. Hard working families who have never taken a dime from the government before and are embarrassed that they are now. I am happy that they are getting some temporary help.
In a few more weeks, when I have no more unemployment, if I still have not found a job that is at even half the pay that I was previously earning I will take whatever I can get. If it is 2 or 3 minimum wage jobs, then that is what I will string together. Your condescension and attempt to shame and embarrass me or anyone else tells us all exactly who you are, so thanks for making that abundantly clear.

 

[MKCP5]

Another benefit of the new relief bill is 10,000 of unemployment for 2020 will not be taxed on your federal return. We’ve already filed our tax return, so will be amending the return!
I wish you luck!

Thank you. I have another interview (finally!) on Monday and I am hopeful this might come through!!!

 

[MKCP5]

The $300 is federal only. State unemployment is going to be state dependent. Since each state does things differently, I'd call state unemployment office to both ensure you'll receive a smooth transition with the new federal amount and also if you're eligible for an extension on state benefits.

Trust me, I know how terrible that sounds. I once spent 3 hours on hold trying to gather info for my wife and was told they could only help her.

I hope you're able to locate a job situation that works for you soon!

Thanks very much. Something will break soon and I will find work. I appreciate your well wishes!

 

[MKCP5]

Another benefit of the new relief bill is 10,000 of unemployment for 2020 will not be taxed on your federal return. We’ve already filed our tax return, so will be amending the return!
I wish you luck!

Thanks very much!

 

[CAPSLOCK]

There is a big difference between collecting unemployment for a few months, versus a year plus. Maybe you are one of the people who the system is legitimately helping; plenty of others are not. Plenty of people left their minimum wage job, and have no incentive to get it back because the government is handing out more in unemployment than people who actually work 40hrs/week are bringing home (myself included). So no, I do not have sympathy for the majority of those who are taking unemployment funds which are designed to provide temporary emergency assistance, and using that as a reason not to take another job that is bring offered.

For months now, it has been clear that not all jobs are going to be back within this coming year even. If someone has the financial means to wait for the ideal job again, kudos to them. If not, then at some point the government should not be paying people to wait for that opportunity to arise. It is possible to work a lower paying or less desirable job while searching for a better one.

 

[HeatherC]

There is a big difference between collecting unemployment for a few months, versus a year plus. Maybe you are one of the people who the system is legitimately helping; plenty of others are not. Plenty of people left their minimum wage job, and have no incentive to get it back because the government is handing out more in unemployment than people who actually work 40hrs/week are bringing home (myself included). So no, I do not have sympathy for the majority of those who are taking unemployment funds which are designed to provide temporary emergency assistance, and using that as a reason not to take another job that is bring offered.

For months now, it has been clear that not all jobs are going to be back within this coming year even. If someone has the financial means to wait for the ideal job again, kudos to them. If not, then at some point the government should not be paying people to wait for that opportunity to arise. It is possible to work a lower paying or less desirable job while searching for a better one.

Unfortunately, a lot of those lower paying jobs are much less money than unemployment pays and people still need to pay bills and put food in the table. Too bad there isn’t an incentive to do both instead of losing unemployment if you take a lower paying job that is less than unemployment. The system is messed up for sure.

And for once, I am actually ok with all of it because this pandemic has been a nightmare for so many. Right now I personally feel like we need to just help everyone out and when things go back to as normal as possible then rethink things. Things are stressful enough for everyone.

 

[disneyandme]

...... Plenty of people left their minimum wage job, ..... ....... using that as a reason not to take another job that is bring offered.

I don't know what state you live in, but in my state you are not eligible for unemployment if you "left" your job and the employer has to verify why you are not longer working at your job. Also, if you are offered a job, you have to report it during each weekly certification and would lose your unemployment unless you have special circumstances to not take it -- Currently Covid positive, taking care of someone covid postitve, etc.

 

[LAS2AMS]

I don't know what state you live in, but in my state you are not eligible for unemployment if you "left" your job and the employer has to verify why you are not longer working at your job. Also, if you are offered a job, you have to report it during each weekly certification and would lose your unemployment unless you have special circumstances to not take it -- Currently Covid positive, taking care of someone covid postitve, etc.

Most states were so bottlenecked with unemployment claims, that they approved nearly everyone who applied. Most states also decided not to raise the unemployment insurance premiums employers paid during COVID, giving them no incentive to fight claims.

I truly feel for the OP. A close relative lost her dream job of over 20 years as a result of the pandemic, and is having a hard time moving on.

That said, the inflated unemployment checks had no checks and balances. In many states, (when the benefit was $600 + the state) one could collect $800-$1000 a week, with no payroll taxes deducted. There’s no reason that a part time server who made $300 a week should’ve been collecting $800+ in unemployment. Unsurprisingly, various sources (WSJ, LA Times, etc) estimated that 80%+ of unemployed workers collected more on unemployment that they did working.

I read several posts on here where the users talked about collecting the $600 benefit for jobs they occasionally did for fun. Usually the narrative was ‘I worked as a paid lunch aid at my kid’s school, only when I wanted to. I applied for unemployment and was stunned when I qualified.’ No, you truly didn’t qualify and yes, you’re abusing the system.