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Your right unemployment has been taxed and I'm sure wont effect people too much as far as putting them in a way bigger tax bracket. Also you cant blame people for spending there money when for some it's 300-400 more then what they was making anyway so technically it's extra so yeah people gone slurgeI'm talking strictly the one-time COVID check.
Nobody on unemployment should be buying Js right now lol.
With that said, unemployment benefits have always been subject to federal (and most state) taxes.