My brother works on an oil rig and was laid off during covid for 4-5 months last year. He received unemployment benefits and we had him withhold 10% of unemployment benefits for taxes
Flash forward to tax season. I help my brother with his taxes and do that through a tax software online (Freetax USA) it’s typically pretty easy since he’s just a W-2 employee. He got decent refund but nothing crazy. He received a deposit from the IRS for another $1,200 and a letter saying that it was due to a math error (letter send to look at form 8888)? It also says on the letter due to recent regs/tax laws around unemployment compensation?
Has anyone heard of this or know of a recent unemployment comp law change? I told him not to spend it for now until we can make sure it wasn’t a mistake. Thanks!!
Submitted June 26, 2021 at 06:56AM by BeatsByBeatson17 https://ift.tt/3jl6vOb
