It could be difficult for hundreds of thousands of Texans come tax time who unexpectedly found themselves having to rely on unemployment benefits in 2020 and didn't realize those payments are taxable income.
"More people than ever are going to be receiving a 1099-G for unemployment this year due to the pandemic." Extension tax expert Susie Latta says it's new to many people this year who didn't realize they needed to request to have federal withholding from their unemployment benefits in order to avoid this tax exposure.
There is some good news though. The IRS has moved the tax filing deadline from April, 15 to June, 15th for Texas Taxpayers. You should receive a Form 1099-G, Certain Government Payments showing the amount of unemployment compensation paid to you during the year in Box 1, and any federal income tax withheld in Box 4.
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