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Senate panel approves bill to let state withhold income tax from unemployment benefits
Summary
The Senate Revenue & Tax Committee voted to pass House Bill 1049, which would allow the state to establish withholding on unemployment benefits; DFA testified there is no revenue impact and the U.S. Department of Labor has already authorized the approach.
The Senate Revenue & Tax Committee on Wednesday approved House Bill 1049, a measure intended to permit state income-tax withholding on unemployment benefits.
Senator Dismain, who presented the bill, said lawmakers exempted unemployment benefits from state income taxation for calendar years 2020 and 2021 but that the exemption created a challenge because state withholding had not been implemented. "We exempted unemployment benefits from state…
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