The US government is adding $600 a week to unemployment pay during the pandemic, but it’s not tax free
- Unemployment benefits are considered compensation, just like income from a job.
- Under the CARES Act, the federal government is paying eligible unemployed people an extra $600 a week until July 31.
- The additional payment is added on to your regular benefits and will be taxed as income.
- Read more personal finance coverage.
Millions of Americans seeking unemployment benefits due to the coronavirus pandemic are getting a boosted payout.
Under the CARES Act, any eligible unemployed person will receive both regular unemployment benefits from their state and an additional $600 per week from the federal government from April 5, 2020 until July 31, 2020.
As long as you qualify for state benefits, you’ll get the extra $600 added to your weekly pay.
Is the $600 unemployment tax free?
Unemployment benefits are generally …continued .
[Source: Business Insider]