It's almost tax season and if you got unemployment benefits, you could owe taxes on those benefits this year. Here's what you need to know. According to News 10 ABC, many people had to take advantage of the unemployment benefits this year due to the pandemic. But what comes along with those benefits are tax payments. The checks that were received with the unemployment benefits are taxable. They are considered taxable income.

If you overlooked or didn't understand the federal withholdings question when you filled out the unemployment benefits, you may owe this tax season. Plus some people applying for unemployment might have needed all of their money and didn't withhold on purpose. If you didn't withhold any money, you could owe up to ten percent of your earnings.

If you are worried that you may owe money to the Internal Revenue Service (IRS) because of your unemployment benefits, there is a way to get ahead of it. You can set up an installment agreement. This way they know you are committed to paying off your tax debt.

There is still no word when the IRS is going to start to accept tax returns. Things have been pushed back because of the coronavirus pandemic.

By the way, the COVID-19 stimulus checks are not taxable. They are under the CARES Act, not part of taxable income.

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