The past year has been a difficult one. Due to the pandemic, people across the country suffered through a loss of a job and/or financial hardship during an unimaginable tragic time. That’s why for many people 2020 meant having to file for unemployment, some for the first time. According to the U.S. Bureau of Labor Statistics, the unemployment rate hit a record high of 14.7% in April 2020. The number rose by 15.9 million to an astronomical 23.1 million that month. As you review your 2020 taxes, there are a few things you should know when it comes to your unemployment income and what it could mean for your filings.
For tax purposes, unemployment compensation is considered income, so it is usually taxable. However, Congress provided a one-time exemption in the American Recovery Relief Act, resulting in a significant tax break for those Americans who received unemployment compensation last year.
Taxes are waived on the first $10,200 in unemployment benefits for individual taxpayers, and up to $20,400 for married couples filing jointly. In either instance, as an individual or as a married couple, your modified gross income must be less than $150,000 to benefit from this tax break.
If you have already filed your taxes for 2020 and were not aware of this tax break, the IRS is currently advising that they will be automatically issuing refunds so that an amended return is not necessary.
If you have any questions about your domestic relations matter, please contact one of our attorneys at Ryan Faenza Carey.
This should not be considered tax advice; any questions about your taxes should always be directed to a qualified CPA or accountant.
First Impressions: Four Benefits You Can Rely on from Ryan Faenza Carey
Divorce, Family Law, InformationAre you or your spouse considering divorce? Ryan Faenza Carey can help. We understand that divorce and family law matters are emotional and frightening for most people. What do I do? What is going to happen to me? What is going to happen to our children? Where am I going to live? What do I need to know or ask? We know how difficult a process it is for you, and how to protect your interests, and that of your children. We pride ourselves on our commitment to our clients. Here’s what you can expect when you contact us:
A Team of Seasoned Professionals
A Personalized Experience
Informative Client/Attorney Relationships
We Work Towards Reasonable Goals and Outcomes
Let us help you. Call or email us today. For more information visit our FAQ page.
How Your 2020 Unemployment Income Could Impact Your Taxes
Financial Matters, Information, NewsThe past year has been a difficult one. Due to the pandemic, people across the country suffered through a loss of a job and/or financial hardship during an unimaginable tragic time. That’s why for many people 2020 meant having to file for unemployment, some for the first time. According to the U.S. Bureau of Labor Statistics, the unemployment rate hit a record high of 14.7% in April 2020. The number rose by 15.9 million to an astronomical 23.1 million that month. As you review your 2020 taxes, there are a few things you should know when it comes to your unemployment income and what it could mean for your filings.
For tax purposes, unemployment compensation is considered income, so it is usually taxable. However, Congress provided a one-time exemption in the American Recovery Relief Act, resulting in a significant tax break for those Americans who received unemployment compensation last year.
Taxes are waived on the first $10,200 in unemployment benefits for individual taxpayers, and up to $20,400 for married couples filing jointly. In either instance, as an individual or as a married couple, your modified gross income must be less than $150,000 to benefit from this tax break.
If you have already filed your taxes for 2020 and were not aware of this tax break, the IRS is currently advising that they will be automatically issuing refunds so that an amended return is not necessary.
If you have any questions about your domestic relations matter, please contact one of our attorneys at Ryan Faenza Carey.
This should not be considered tax advice; any questions about your taxes should always be directed to a qualified CPA or accountant.
How Your Divorce Could Impact Your Child’s College Choice
Children, Divorce, Family Law, Financial Matters, ParentingIt should be an exciting time when your child’s college acceptances are coming in, but it’s important to consider how your divorce could impact your child’s college choice. Planning ahead and reviewing your Judgement of Divorce before the process gets too far can help. Attorney Jennifer Liddell provides a few things to know before you and your child head out on those campus tours.
Hopefully, before the acceptance letters are in the mail, you carefully reviewed your Judgment of Divorce (or Paternity) prior to your child looking at colleges to determine the steps that need to be taken to avoid conflict or uncertainty. This includes ensuring involving your co-parent as provided for in your judgment.
Most divorce judgments provide a timeframe as to when discussions on how applications to college are handled, as well as how to decide which college your child will attend. However, if your child was young when you got divorced or separated, the language may be broad, which can lead to uncertainty and disputes. Overall, we recommend reviewing your divorce judgment on an annual basis.
If you have questions about avoiding last minute litigation when it comes to college choice or contributions to the expense of college, please contact one of our attorneys at Ryan Faenza Carey.
8 child support questions and the answers you need
Child Support, Children, Family Law, Marriage, Parenting, SeparationThere are so many questions to consider when it comes to child support. Attorney Kara Carey lays out some of the most frequently asked questions, so you don’t have to go searching the web. From costs, to taxes and Massachusetts guidelines, and some of the other questions you may not think to ask.
For more information on related child support questions or when child support ends, view our blog discussing the same.
How will you divide your home in divorce?
DivorceA home is the largest asset for many couples. In a divorce, if the home will not be sold, you have to determine who will retain the home, refinancing terms to remove the other party from the mortgage, and how to handle the equity. If the parties are going to jointly remain on the deed after a divorce, there is risk. How a property is deeded can have a huge impact on what occurs if a party passes away while the property is still co-owned.
A tenancy by the entirety (how most married couples title their home) automatically converts to a tenancy in common upon the entry of the divorce judgment, pursuant to Bernatavicius v. Bernatavicius. A property that is held as joint tenants does not change upon the entry of the divorce. The way the property is titled may conflict with the terms of your Separation Agreement and the intent of the parties – speak with experienced divorce counsel to ensure your rights in this important asset are protected.