Rep. Susie Lee Pushes for Tax Relief for Unemployed Nevadans

Press Release

U.S. Rep. Susie Lee (Nev.-03) co-sponsored the Coronavirus Unemployment Benefits Tax Relief Act, introduced by Rep. Cindy Axne (Iowa-03), which would provide additional financial relief to Americans who have been unemployed during this unprecedented public health and economic crisis. Those affected would be able to temporarily exclude the first $10,200 of unemployment compensation from federal income taxes for tax year 2020.

"Thankfully, the unemployment rate in Nevada is trending down, but thousands of Nevadans are still struggling without a stable source of income," said Rep. Lee. "Nevadans need help, and more than anything, they need financial stability. We passed emergency unemployment relief twice in the last year to get relief to workers displaced by the pandemic. But we are dealing with the unprecedented fallout from a once in a lifetime crisis. We need to do more. This bill would give Nevadans more room to use the relief on what matters most: to pay the bills, provide for their families, and make ends meet as we defeat and recover from this pandemic."

BACKGROUND: The CARES Act, passed by Congress in March 2020, provided an additional $600 in unemployment benefits through the end of July. The $10,200 of tax relief provided in this bill would cover 17 weeks of that $600 per week benefit.

This calculation is based on similar tax relief that was provided in the 2009 American Recovery and Reinvestment Act (ARRA). ARRA included up to $2,400 in tax relief to cover unemployment benefits that were provided during the last recession.

The U.S. Department of Labor estimates that more than 18 million Americans are still receiving some form of unemployment benefits. In May, over 25 million Americans were claiming some form of unemployment benefits.

In December, Congress passed new legislation that extended federal unemployment benefits, including an extra $300 per week for all workers, through March 14, 2020.

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