Question: I was laid off in 2020 and should have received all my unemployment benefits that year, but the state was so backed up that I had to wait. I was paid in 2021 for weeks I had claimed in 2020. Can I get the tax break for those payments? Or did I have to get the money in 2020?
Answer: You had to receive the money in 2020, according to the Internal Revenue Service.
The American Rescue Plan of 2021 provided tax relief for individuals who received unemployment compensation in 2020, allowing them to exclude up to $10,200 of unemployment compensation from their gross income if their modified adjusted gross income was less than $150,000. “The law clearly limits the exclusion to unemployment benefits ‘received’ during tax-year 2020, and our FAQs (on irs.gov Opens in a new tab) also refer to benefits received in 2020,” David Tucker, an IRS spokesman, said in an email.
We’ve received similar questions from other readers, who also said they had waited many months for the state to finally approve and pay their unemployment claims; several mentioned long adjudication or appeals processes. They were relieved to finally get the money, but worried about losing the tax break, which it turns out they have.
We don’t know how many Hawaii residents were affected. We asked the state Department of Labor and Industrial Relations how many unemployment claims filed in 2020 did not get paid that year, but did get paid in 2021 or 2022. Spokesman Bill Kunstman said the department does not compile such statistics and doesn’t “have the ability to pull that (information) out of the mainframe application.”
To answer other readers’ question, yes, unemployment compensation is generally treated as taxable income. As stated, the 2020 tax break has not been extended.
Q: Regarding red-light cameras, what about automobiles operating without a front license plate? I see a majority of Teslas not having their front plates displayed.
A: The red-light camera system will photograph the rear of the motor vehicle and the motor vehicle license “at the time the motor vehicle fails to stop when facing a steady red traffic-control signal in violation of HRS section 291C-32(c),” according to the program’s administrative rules.
So the lack of a front plate shouldn’t deter the automated ticketing system, although not having one is against the law in Hawaii, even for Teslas.
Q: Is it too late to order those free COVID-19 tests? My neighbor got hers right away, which surprised me, so maybe it’s worth a try?
A: You can still place an order via covidtests.gov Opens in a new tab (or direct at special.usps.com/testkits Opens in a new tab) but the federal government no longer offers shipment within seven to 12 days of ordering. Now the online form says: “Due to high demand, we’re fulfilling orders as tests come in. Place your order now and it will ship as soon as tests become available. Thank you for your patience.”
To answer other questions from readers who already received their orders: No, you can’t place another order online. This program is limited to one order per residential address and provides a total of four tests, regardless of household size.
Auwe
With the latest bribery charges, it’s all the worse that the public is still denied access to the state Capitol building! Let the people in! We need to see what’s going on in there! Auwe! — A voter
(The state Capitol has been closed to the general public since March 2020, early in the pandemic, making this the third consecutive legislative session affected).
Mahalo
Mahalo to Louis of Rainbow Roofing, who was helped me (disabled) take my grocery cart to my condominium floor when our elevator was not working. — G.F.
Write to Kokua Line at Honolulu Star-Advertiser, 500 Ala Moana Blvd., Suite 7-500, Honolulu, HI 96813; call 808-529-4773; or email kokualine@staradvertiser.com.
