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“DC Unemployment Benefit Tax”

“Dear PoPville,

I was laid off during COVID. Fortunately I received a one time payment of severance to tide me over while I looked for another job. Still panicky about being unemployed during a global pandemic, I filed for unemployment benefits. Those were denied due to my severance, and I ended up getting a new job before my severance was used up (though it paid less than the unemployment benefits would have) so I never actually was eligible for, nor did I receive any unemployment benefits.

Yesterday I got a letter from DC requesting I pay taxes on $240 worth of unemployment benefits (which I never actually received.)

I called the department, they confirmed I was never eligible and did not receive the benefits but couldn’t advise on what to do about this tax collection notice.

Anyone else in this boat? The tax bill is under $30 so I can easily just pay it and move on, but it worries me that DC allocated $240 to benefits I never earned and I don’t want the federal government to see that and take on their stimulus amount to it and end up owing there as well.

Any advice is appreciated!”

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