•   
  •   
  •   

Politics Arizona Legislature won’t allow state tax on unemployment benefits, PPP loans

01:40  16 april  2021
01:40  16 april  2021 Source:   washingtonexaminer.com

Food banks, passing on passports, governors’ shots: News from around our 50 states

  Food banks, passing on passports, governors’ shots: News from around our 50 states How the COVID-19 pandemic is affecting every stateStart the day smarter. Get all the news you need in your inbox each morning.

The PPP loan is a valuable resource for many business owners, especially for employers who have employees with unemployment insurance. With the new loan , employers will have the ability to pay their employees as they would normally and can avoid paying unemployment taxes . Generally, an employee won ’ t get UI benefits even if their employers have a PPP loan . But, there may be an exception for some employees in this situation. They actually have a live chat service on their main UI website.

State Taxes on Unemployment Benefits : Colorado taxes all unemployment benefits . When filling out their 2020 Colorado income tax return, you must add back the amount of any unemployment compensation excluded from your federal taxable income under the American Rescue Plan Act. The Hawaii Department of Taxation is unable to provide any definitive guidance on adopting the federal exemption of the first ,200 of unemployment compensation received in 2020 until the state legislature passes an related legislation . State Income Tax Range: Low: 1.4% (on taxable income

Arizona has no plans to tax unemployment or federal loans its residents and local businesses received during the COVID-19 pandemic.

a person standing in front of a store © Provided by Washington Examiner

The Arizona Senate and House unanimously have approved of Senate Bill 1752, which fully conforms state tax code with the federal code. Doing so means, with limits on income, an Arizonan who received unemployment aid at the state or federal level will not be responsible for paying state income taxes on it. The measure also means business owners who had Paycheck Protection Program loans forgiven won’t have to treat that money as income in their state tax filings.

'The worst': Tax professionals sound off on the 2020 tax filing season

  'The worst': Tax professionals sound off on the 2020 tax filing season It's very hard to win a game when the rules keep changing as you're playing.It's very hard to win a game when the rules keep changing as you're playing.

States have tried seizing unemployment benefits during the pandemic. Some fear new rules won ’ t help. More from Personal Finance: What to know if you're applying for a second PPP loan Free college could become a reality The state legislature would need to amend state law to do so, she said. States may reduce current jobless benefits , garnish tax refunds, intercept lottery winnings

Some states , however, waive income taxes on unemployment checks. If you live in a state like California, Montana, New Jersey, Pennsylvania and Virginia, your unemployment benefits are tax -exempt. Additionally, seven states —Alaska, Florida, Nevada, South Dakota, Texas, Washington and Keep in mind that tax credits are not something you should bank on to wipe out what you owe to the IRS. "I wouldn' t count necessarily on the tax credits for your tax liability," Stettner says. This article has been updated to include additional information on unemployment changes, including the

"The passage of SB 1752 is important legislation that will have an immediate, positive impact on millions of Arizonans and Arizona businesses," said Sen. Vince Leach, the bill's sponsor. "Because of relief packages passed by Congress to ease the pain of COVID-19 and its economic impact, the tax code saw significant changes, and Arizona needed to conform to those changes."

The Saddlebrooke Republican said that, when Governor Ducey signs SB 1752, it will provide more than $600 million in tax relief to Arizonans. Those who lost their jobs during COVID will now see the first $10,200 in unemployment income excluded from taxation, under Leach's bill.

The bill succeeded as many are preparing their taxes. Arizona moved its tax filing deadline to May 17 to match the federal deadline.

Disney smiles, boardwalk shots, parklet program: News from around our 50 states

  Disney smiles, boardwalk shots, parklet program: News from around our 50 states How the COVID-19 pandemic is affecting every stateStart the day smarter. Get all the news you need in your inbox each morning.

States that currently tax unemployment benefits have yet to decide whether they will allow those state taxes to be waived as well. The change is good news for many taxpayers, who could save as much as billion, according to the Wall Street Journal. But it also affects an already complex tax Michigan resident Bridget Harwood was furloughed from her medical assistant job for three months last year when many businesses in her city closed. The unemployment benefits she received during that time also resulted in a smaller tax refund this year. Instead of the roughly ,500 refund she typically

More unemployment benefits than usual in 2020. Unemployment soared in 2020 because of the pandemic and, because of that, many people received unemployment compensation who had never done so before. This federally funded benefit extended to people who weren’ t traditionally covered by state unemployment insurance. Under what’s called the Pandemic Unemployment Assistance (PUA) program, the self-employed, independent contractors and so-called gig workers were covered by unemployment for up to 39 weeks if they lost their jobs as a direct result of the pandemic.

“I have accountants call me all day, every day, saying, ‘Why haven’t you guys passed this?’ ” said Rep. Jeff Weninger, R-Chandler.

The measure still needs Gov. Doug Ducey’s signature.

“This is exactly what we should be doing in the state of Arizona to help businesses and people impacted by COVID with targeted tax relief,” Rep. Aaron Lieberman, D-Paradise Valley, said Tuesday. “This is not a broad-brush, widespread giveaway. This is exactly what working Arizonans, laid-off Arizonans, everybody across the state who has been hit by COVID will get additional support because conforming with this.”

Under the conformity, a House analysis estimated it will reduce general fund income tax collections by $624.8 million, but that will be spread over several years. The same estimate predicted conformity would decrease local government distributions by $93.7 million in the coming years.

Jeff Bezos endorsed higher corporate tax rates. But it won't cost him much

  Jeff Bezos endorsed higher corporate tax rates. But it won't cost him much A year ago, Joe Biden, then the presumptive Democratic nominee for president, was picking a fight with Amazon over how little it paid Uncle Sam. Now Biden is president, and Amazon CEO Jeff Bezos is on a lonely island supporting the White House's plan -- to raise corporate taxes. © Saul Loeb/AFP/Getty Images Jeff Bezos, founder and CEO of Amazon, speaks during the Economic Club of Washington's Milestone Celebration event in Washington, DC, on September 13, 2018. Hardly any other company leaders have come out in support of Biden's plan.

Simply put, your PPP loan will not affect your tax filing process. How Bench can help. Your signed PPP loan contract stated you would produce monthly, government ready financials. This means you are required to have bookkeeping in place. If you don’t, you could suffer penalties and fines or trouble with an audit. One thing that can sometimes take unemployment recipients by surprise is finding out that yes— unemployment benefits are considered taxable income. That means you will have to pay state and federal taxes on the amount of money you receive, though you won ’ t have to pay medicare or

The Paycheck Protection Program ( PPP ) is a 3-billion business loan program established by the United States federal government in 2020 through the Coronavirus Aid, Relief

Rep. Mitzi Epstein, D-Tempe, voted in favor of the bill but worried about the hit to state revenue in the coming fiscal years.

“Although these are many important tax programs, we do not want to be imprudent going forward, and tax cuts going forward could be highly problematic in our ability to help people in need as we continue to move forward,” she said.

Weninger said it wasn’t the federal or state government that was helping people during the pandemic, rather the “taxpayers and the citizens of the United States” that provided the aid.

Tags: States, News, Arizona, Unemployment, Taxes

Original Author: Cole Lauterbach, The Center Square

Original Location: Arizona Legislature won’t allow state tax on unemployment benefits, PPP loans

Steven van Zandt, casino shots, dance fever: News from around our 50 states .
How the COVID-19 pandemic is affecting every stateStart the day smarter. Get all the news you need in your inbox each morning.

usr: 1
This is interesting!