Treasury Grants Relief From Unemployment Tax Penalties & Interest
February 11, 2021
By Jessica Mathews / firstname.lastname@example.org
Livingston County residents and others across the state are being granted relief from unemployment benefit tax penalties and interest.
The Michigan Department of Treasury says residents who collected state unemployment benefits last year will not be required to pay penalty and interest related to underpaid estimated tax payments. Effective immediately, the department has granted an automatic waiver of all penalties and interest related to underpaid estimated tax payments owed by taxpayers who received unemployment benefits in 2020. Under state law, taxpayers are required to pay quarterly estimated tax payments when the annual tax due is expected to exceed $500 or more. Taxpayers who fail to pay an estimated quarterly tax payment are typically subject to penalties and interest.
All taxpayers who received unemployment during the 2020 tax year will automatically receive this waiver. Because this waiver is automatic, taxpayers do not need to contact the state Treasury Department or provide any additional documentation for a waiver be applied.
A press release reminds that unemployment benefits are subject to federal and state taxes. Taxpayers who chose to not have taxes withheld from their benefits will owe any outstanding tax. The state of Michigan will begin processing state individual income tax returns on February 12th. For the benefit and convenience of taxpayers, both the beginning and end of the individual income tax filing season are the same as the Internal Revenue Service.
Additional details related to waiver of penalties and interest on estimated tax payments can be found through the provided link.