Hoosiers who received unemployment benefits cannot claim the $10,200 federal tax break on their state taxes.

Lawmakers in the House wanted to shield $10,200 of unemployment benefits from state income tax, mirroring federal tax relief provided to out-of-work Hoosiers. But the Senate disagreed and removed that language.

House Bill 1152 would add penalties for people who dont disclose income or falsify facts when seeking unemployment benefits.

President Joe Biden signed the American Rescue Plan into law Thursday, intended to provide economic stimulus to those hardest hit by the COVID-19 pandemic.

Across the country, unemployment rates skyrocketed due to COVID-19, but the South and Midwest seemed to fare a bit better.

An overpayment happens when the state pays someone unemployment benefits and later determines they're ineligible for those benefits.

The bill would disqualify and penalize people who lie or withhold information in their applications for unemployment benefits.

House Bill 1152 would disqualify and create penalties for people who fail to disclose new income while getting benefits, or falsify a fact on an unemployment insurance application.

In late September, Indiana reported to the U.S. Department of Labor it may have overpaid around 34,000 claims on regular unemployment insurance alone. Thousands more cases were listed as overpaid on newer federal unemployment programs, too.

The Indiana Department of Workforce Development will reopen a federal program on Jan. 22 that extends unemployment benefits.