How much and where do I pay taxes on the extra $600?

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There are a few ways you can pay taxes on your unemployment.

You can choose to have them taken out when applying online for jobless benefits for some states. Or you can fill out Federal Form W-4V Voluntary Withholding Request and have federal taxes automatically have taxes taken out, according to Greene-Lewis. When you fill out the form you can request to have up to 10% taken out, she added.

Once you are working again, if you have an employer you can adjust your federal tax withholding using Form W-4. If you are self-employed, you can make adjustments in your estimated tax payments when it is time to pay. The first and second federal estimated tax deadlines were extended to July 15.

At tax-time you may be able to offset your taxes which some of the credits you were not eligible for in the past if your income is lower like the Earned Income Tax Credit worth up to $6,660 in tax year 2020 for a family with three kids, the Saver’s credit worth up to $1,000 single and $2,000 married filing jointly, or the Child and Dependent Care Credit worth up to $1,050 with one child and up to $2,100 with two or more kids.

— Jessica Menton

Follow Jessica on Twitter: @JessicaMenton.

I am a massage therapist in NY and we’re allowed to open in Phase 3. Can I work two days a week and then claim PUA two days a week?

… I don’t know how many of my clients are ready to come back and get a massage. Can I do this until I get a better idea of when my business will be back to normal?

In general, as long as you make less with your reduced schedule than the amount you are receiving in unemployment then you can claim Pandemic Unemployment Assistance, according to Lisa Greene-Lewis, a certified public accountant at TurboTax.

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States have different rules on how much you can earn and still be eligible, so check those details with your individual state. Also, keep a record of how much you work and make sure you report the amount you make to your state, she added.

… Would I still get the full $600 per week if I did this? 

Yes, if you qualify for unemployment based on your state requirements you should qualify for the additional $600 under Federal Pandemic Unemployment Assistance.

— Jessica Menton

Follow Jessica on Twitter: @JessicaMenton.

What happens if I open, later one of my clients tests positive for COVID and I have to shut down my office? Would I be able to file for PUA again?

You may as long as you haven’t exceeded the amount of weeks eligible for unemployment. Under PUA, the amount of weeks was extended to 39 weeks. With unemployment you don’t have to use all of the weeks consecutively.

— Jessica Menton

Follow Jessica on Twitter: @JessicaMenton.

I work in sales and not making commissions because of COVID-19. Do I have any government protection?

You should. The Pandemic Unemployment Assistance program allows a much larger pool of workers to get jobless benefits when their work is affected by the virus. Check online with your state’s unemployment office to get more clarity.

— Charisse Jones

Follow Charisse on Twitter @charissejones.

I work in two different states and receive unemployment from both. How will the extra $600 be applied?

The $600 is in addition to the amount determined under state law, according to the CARES Act. This means you can calculate what you are eligible to receive by any state and add on the $600. It doesn’t say it is per claim or per state, says Toby Mathis, a partner and attorney at Anderson Law Group in Las Vegas, Nevada. The Department of Labor says that when you file for unemployment for two jobs where one of the jobs is outside of your state of residence, you should file with the state in which you reside and make them aware of the claim in another state, he added.

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