6 million Americans have been unemployed for half a year or more, but only some realize that unemployment benefits are taxable. The fast-approaching April 15 tax deadline can be dreadful for them. However, taxpayers should take advantage of the many tax breaks the IRS is offering. The organization intends to distribute $300 billion in refunds for this tax season.
If taxpayers owe more than they can currently afford, IRS Commissioner Doug Shulman advises that they contact the organization to make arrangements to extend the deadline up to 120 days without fees or create a payment plan with installments.
To avoid the tax season stress, taxpayers receiving unemployment checks can opt to have a portion of their income withheld every month to compensate for taxes. They may even receive a refund for that tax season.