- NYS has yet to release guidance regarding the state’s stance on federal unemployment compensation tax exemption
- Will Cuomo follow the Fed or will unemployed New Yorkers see lofty tax bills?
The jury’s still out on whether New York will be following the federal IRS ruling regarding unemployment exemptions. Time is ticking quickly on tax season, even with an extended deadline. The governor’s lack of support and guidance on the topic is causing confusion amongst those who wish to claim the benefit and frustration amongst tax preparers who await official filing instructions.
The American Rescue Plan, enacted earlier last month, allows households earning up to $150,000 to exempt unemployment payments up to $10,200 from their income on 2020 taxes. Tax breaks like this will be a necessity this year as struggling households find their financial footing once again post-COVID-19.
Just yesterday, Cuomo signed off on a $212 billion budget for state infrastructure. The bill includes a wealth tax and levies a tax on big business to compensate for the $2.1 billion fund that will provide single unemployment payments for undocumented workers who did not previously qualify for federal aid.
Where is Cuomo’s aid for the rest of jobless New York? Moreover, where is the guidance that taxpayers and preparers need during an already turbulent, constantly evolving, and highly stressful tax season?