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 on their annual IRS return.
The Tax and Customs Authority (AT) explained to ECO that there is no question of "social support", which means that the 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 experienced income cuts due to the pandemic. This aid that was paid in the summer of 2020, by the social security to people who were laid off in a 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 Social Security, via bank transfer. The benefit was the difference between the basic pay declared in February 2020 and that declared within 30 days of layoff. This with a minimum of 100 euros and a maximum of 351 euros.
As IRS returns on income received 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 that must be filed between April and June.
