Unemployment benefit is taxed and I believe the federal $600 will be treated the same way. Beneficiaries will receive a 1099-G as tax season begins.
Perhaps some people will get a very unpleasant surprise when they start doing their 2020 taxes.
That is gonna hurt a lot, if these low wage earners haven’t been on UI before. Does anyone think they are saving a portion of this windfall? I doubt it.