Tax Relief

Unemployment Tax Ease Act launched by Illinois Congress by Illinois legislature, Durbin, Duckworth, Foster

WASHINGTON (WLS) – Illinois Senators Dick Durbin and Tammy Duckworth, and Congressman Bill Foster, have passed legislation to give tax breaks to anyone who has received unemployment benefits in the past year.

The act, known as the Coronavirus Unemployment Benefit Tax Relief Act, would waive federal income tax on the first $ 10,200 in unemployment benefits collected in 2020. This relief applies to workers who have received benefits under the Pandemic Unemployment Support Program (PUA) and Pandemic Emergency Unemployment Compensation Program (PEUC), as well as anyone who has received traditional unemployment benefits through their state unemployment insurance.

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The CARES bill, passed in March 2020, provided for additional unemployment benefits of $ 600 per week through the end of July. The relief provided in the bill would cover 17 weeks of this increased benefit.

The bill’s authors said it was based on similar tax breaks in the American Recover and Reinvestment Act of 2009, which included tax breaks of up to $ 2,400 to cover unemployment granted in the last recession.

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It is estimated that more than 18 million are still in some form of unemployment, estimates the US Department of Labor. As of May 2020, more than 25 million Americans applied for some form of unemployment benefit.

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