Employees who have been laid off for at least 30 days have received the Lay-off during the layoff period. They will now have to include it in their annual IRS return.
The Tax and Customs Authority (AT) explained to ECO that there is no question of "social support", which means that amounts received through this channel are subject to taxation by the IRS , being considered as Category A income (resulting from dependent work).
Licensees will be required to report the lay-off in IRS
The Lay-off was created to provide support to workers who suffered income cuts due to the pandemic. This aid, which was paid in the summer of 2020, by Social Security to people who were laid off in the conventional or simplified way for a period of at least 30 days between April and June. Whose basic pay did not exceed the value of 1270 euros, in February 2020.
This benefit was not subject to any requirements, i.e. it was paid automatically by Social Security, by bank transfer. The aid corresponded to the difference between the basic salary declared in February 2020 and that declared within 30 days of layoff. With a minimum of 100 euros and a maximum of 351 euros.
As IRS returns on income earned in 2020 approach, ECO questioned the tax authorities, who clarified that the Lay-off is subject to taxation under the IRS code. In other words, the amounts must be included in the annual return, which must be filed between April and June.