Stimulus checks won’t be taxed, but unemployment benefits will be
“The federal government has sent billions of dollars directly to Americans to help them cope with the economic fallout of the pandemic, but now that tax season is approaching, some people could find they owe some of the money back. Stimulus checks, unemployment and more: Here’s the aid that’s coming from Washington — and what might be coming soon. It depends on the type of benefit. The two rounds of direct stimulus payments that were sent to millions of Americans are tax-free. But the special pandemic unemployment benefits are treated like income and could increase your 2020 tax bill if money hasn’t already been withheld for taxes.”