Avoid Tax Disaster and Plan Ahead

DALLAS (KRLD) - As the number of Americans who file for unemployment during the pandemic continues to rise… Lynnette Khalfani-Cox says it is important to remember—This is not free money. Lynnette is the CEO and Founder of AskTheMoneyCoach.com and Money Coach University.

She speaks with KRLD’s Kristin Diaz about why Americans who have never received unemployment benefits before, should remember they will need to pay taxes on these benefits next year.

She says those who opt-in for benefits can choose to have taxes taken out of their checks. In order to do so, they will need to file a W-4V. As a reminder about those stimulus checks, however, those do not apply.

You will not need to pay taxes on the $1200 (singles) or $2400 (couples) checks if you qualified for them.