Billions in unemployment and pandemic-related assistance to be taxed
MYRTLE BEACH, S.C. (WMBF) - South Carolina has paid out nearly $4 billion in unemployment and pandemic-related benefits to more than 700,000 South Carolinians since the COVID-19 pandemic began.
While unemployment and pandemic assistance requires recipients search for work it also doesn’t exactly come free. Like any other income, unemployment compensation is taxable, according to the South Carolina Department of Revenue. Both state and federal taxes apply.
For those who have received unemployment or pandemic-related compensation, the DOR recommends preparing now so they’re not caught off guard with an unexpected tax payment.
Individuals can choose to have taxes voluntarily withheld from payments, make quarterly estimated payments, or pay their taxes next year when they file their 2020 income tax return.
For more information on unemployment-related taxes, visit dor.sc.gov and IRS.gov.
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