Many people are struggling right now, especially those individuals who have lost their jobs due to COVID-19 while also dealing with frustrating back taxes.
When it comes to being unemployed and owing back taxes, there’s reason for optimism. While there are some instances where federal tax laws might result in new costs for the unemployed (unemployment compensation is taxable), most tax statutes are structured to help alleviate the financial burden of being unemployed with tax debt. Most importantly, there will be no interruption of your unemployment benefits as we weather the storm of the coronavirus pandemic.
If you’re currently unemployed and owe back taxes, you have several viable options to stay afloat during these challenging times. Please keep reading to learn how to delay payment or resolve back taxes if you’re currently unemployed.