![]() ![]() New Jersey does not tax unemployment insurance payments, but they are subject to federal income tax. What if I earned more than $10,200 in unemployment? Taxpayers don't have to file a form to use this extension.īut individual estimated tax payments to New Jersey for the first quarter of 2021 are still due on April 15, according to the state Treasury Department. This extension applies to individual taxpayers, including those who pay self-employment tax. Here are some commonly asked questions about when to file, how to handle unemployment benefits and business loans, and other changes for the 2020 tax season: Federal and New Jersey tax filing deadlines moved backīoth New Jersey and the Internal Revenue Service extended the state and federal income tax filing deadlines from Apto May 17, 2021. Taxpayers may not know how to report the assistance when filing their taxes, or what tax relief the government already implemented. With stimulus packages, recovery benefits and business loans, many New Jerseyans received income they hadn't ever claimed in prior tax years. ![]() Tax season can always be stressful, but the COVID-19 pandemic threw in more complications. Due to the high volume of emails we receive, please allow 3-5 business days for a response.Watch Video: AP Explains: Tax season and the pandemic If you do not wish us to contact them, please let us know right away, as it will affect our ability to work on your case. As a part of our process in assisting you, it is necessary that we contact the company / agency you are writing about. We assist individuals with consumer-related issues we cannot assist on cases between businesses, or cases involving family law, criminal matters, landlord/tenant disputes, labor issues, or medical issues. Have a question for Michael and the 7 On Your Side team? Fill out the form HERE! 7OYS's consumer hotline is a free consumer mediation service for those in the San Francisco Bay Area. Take a look at more stories and videos by Michael Finney and 7 On Your Side. For now, anyone who got unemployment benefits last year, whether they were delayed or not, will pay full taxes on those benefits. Some are looking into whether that tax break should be extended to 2021. "That was just really painful to realize you could have been helped long ago," said Morris.ħ On Your Side reached out to members of Congress. and definitely made things confusing for claimants." The on and off again nature of the different federal laws continuing the pandemic extensions of regular benefits did lead to some starts and stops. The EDD did not address the delays, nor what happened to Morris, but told 7 On Your Side: ". VIDEO: EDD tells woman to prove she's a real worker, then locks her out At the same time, the EDD froze 1.4 million claims to investigate fraud, delaying payments just as the tax break expired. Given the large backlog at EDD, Golden says many others likely missed out on the tax break, too.ĮDD statistics show about 310,000 claims were still awaiting approval on the last day of 2020. "I'm sure it's going to be in the high tens of thousands, if not hundreds of thousands of people that are affected." "If they did not receive the benefit until 2021, they're out of luck," he said. IRS enrolled agent Norman Golden, past president of the California Society of Enrolled Agents, says taxes are based on income when it's received - not when it should have been received. RELATED: EDD offices have been closed to the public for over 25 years here's why On top of that, Morris found out she doesn't get the big tax break others got: a $10,200 tax exemption on unemployment benefits paid in 2020. Then to find out that, you wouldn't have had to have done that if unemployment had done what they were supposed to do. "I pretty much maxed out my credit card," she said. ![]() Morris said she really could have used that money during the lockdown when she fell deep into debt. "But then also at the same time, it was so like, why did this happen?" "It was like, it was such a blessing," she said. It was great news until she found out it was taxed. Then, nearly a year and a half later, the EDD realized they made a mistake. In the confusion of the pandemic, the EDD told Oakland resident Crystal Morris she didn't qualify for benefits. The impact of the EDD's infamous backlog seems never to end. Not only was that a hardship, but many are now finding out they missed out on a big tax break, too. ![]() TAX CHAT: Have a question about filing your tax returns? 7 On Your Side wants to help As millions of claims poured in, the EDD was instantly overwhelmed, and many didn't receive benefits until 2021. (KGO) - 7 On Your Side has reported about the Employment Development Department's struggles to deliver unemployment benefits during the COVID-19 pandemic. Some unemployment recipients missed out on a big $10,200 tax break from the IRS because of how long the EDD took to deliver their delayed benefits. ![]()
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