Forced to pay taxes on income never received

[VietMike85]

What is the name of your state? Massachusetts

In 2020, I started receiving Pandemic Unemployment Benefits. I initially chose to receive payment via debit card and after 7 weeks of not receiving funds I switched to direct deposit. After roughly 100-150 phone calls, 30-50 emails, I still have been unsuccessful in receiving the funds (a total of $4,869). I have contacted UA, PUA, Bank Of America(debit card issuer), collections, and even the Unemployment Building in boston. For some reason my problem isn't of interest to anyone I contact and they find a way to either tell me to be "patient" or to try contacting someone else. I have, however, been able to receive the closing statement of the debit card with evidence of exactly my 7 weekly claims, timestamped, dollar for dollar, in my name, which has been closed due to inactivity and refunded to the "sponsor".

First, if there is any advice on how I can resolve this situation, it would be greatly appreciated.
Secondly, what can/should I do about the fact that I was forced to pay taxes on $4,869 on 2020 on income I had never received.. and still haven't received? (for clarity, those weekly claims were marked "paid" so they showed up on my state W2 form in 2020)

 

[Taxing Matters]

What is the name of your state? Massachusetts

Secondly, what can/should I do about the fact that I was forced to pay taxes on $4,869 on 2020 on income I had never received.. and still haven't received? (for clarity, those weekly claims were marked "paid" so they showed up on my state W2 form in 2020)

You are not forced to pay tax on income you did not recieve. You may prepare your returns claiming just the income you did receive.

 

[doucar]

The pandemic unemployment paid in 2020 was excluded from taxable income and you should have gotten a refund or can file an amended return.

 

[VietMike85]

The pandemic unemployment paid in 2020 was excluded from taxable income and you should have gotten a refund or can file an amended return.

PUA income was the ONLY income I received in 2020. With that being said, I had no money withheld, and I had an H&R block accountant file taxes for me. While I do not know specifically if some of the income was tax exempt, I know for certain that all of my income was not tax exempt

 

[Zigner]

PUA income was the ONLY income I received in 2020. With that being said, I had no money withheld, and I had an H&R block accountant file taxes for me. While I do not know specifically if some of the income was tax exempt, I know for certain that all of my income was not tax exempt

Then you should consider filing an amended return to recover the taxes you paid on that "income".

 

[adjusterjack]

PUA income was the ONLY income I received in 2020.

And the total income for 2020 was $4869?

Then you wouldn't have paid any tax at all on that because it was well within the $12,400 standard deduction.

Please take out your 2020 tax return and look at.

On the first page, line 15 should be -0-.

On the second page, line 37 should also be -0-.

 

[davew9128]

Well unemployment isn't reported on a W-2, for starters.

 

[davew9128]

Please take out your 2020 tax return and look at.

Oh come on now. You expect someone to look at a document, take a moment to comprehend it, and not be fully outraged about something that makes no difference one way or the other?

 

[adjusterjack]

Oh come on now. You expect someone to look at a document, take a moment to comprehend it, and not be fully outraged about something that makes no difference one way or the other?

That'll be the day I win the lottery.

 

[LdiJ]

For 2020 the first 10200.00 of unemployment compensation was excluded from income on the federal level, and then with the standard deduction of $12,400 that means that the first 22,600 of unemployment was excluded from income tax. Only if someone's unemployment exceeded that level would they have paid any federal income tax.

Many states followed the same rules. Some states did not follow the federal rules but excluded unemployment for people who were lower income. All states had some form of exclusion/partial exclusion.

So, how much did you actually pay in federal and state tax due to unemployment?