Posts Tagged ‘Unemployment Benefits’

Tips to Help Take The Stress Out of Tax Season

Thursday, March 4th, 2021

The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice. 

Every filing season comes with its own set of challenges and 2021 is no different. The IRS wants taxpayers get the information they need as quickly as possible. Taxpayers can keep in mind these tips when they get ready to file. Following them will help get this year’s taxes done accurately and refunds issued timely.

  • Gather records. Good recordkeeping makes preparing a tax return easier. It can also ensure taxpayers do not overlook deductions and credits. 
  • Start with is available around-the-clock and it’s the fastest way to get assistance. Millions of people use for filing and paying taxes, getting information about their accounts or answers to tax questions. The IRS Services Guide outlines the many ways taxpayers can get help from the IRS.  
  • Use online tools. has many useful online tools. The Interactive Tax Assistant provides answers to many tax questions specific to an individual’s circumstances. It gives the same answers that an IRS representative would give over the phone.

People Should Be on The Lookout for Identity Theft Involving Unemployment Benefits

Thursday, February 25th, 2021

The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice. 

The IRS urges taxpayers whose identities may have been used by thieves to steal unemployment benefits to file a tax return claiming only the income they actually received.

In 2020, millions of taxpayers were affected by the COVID-19 pandemic through job loss or reduced work hours. Some taxpayers applied for and received unemployment compensation from their state. By law, unemployment benefits are taxable.

Scammers also took advantage of the pandemic by filing fraudulent claims for unemployment compensation using stolen personal information of individuals who had not filed claims. Payments made as a result of these fraudulent claims went to the identity thieves.

Taxpayers who receive an incorrect Form 1099-G should contact the issuing state agency to request a revised form. If they’re unable to get a timely, corrected form from states, they should still file an accurate tax return, reporting only the income they received. They should save whatever documentation they have regarding their attempts to receive a corrected form from their state agency.


Are Unemployment Benefits Taxable?

Tuesday, March 5th, 2013

The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice.

Four Tax Tips about Your Unemployment Benefits


If you received unemployment benefits this year, you must report the payments on your federal income tax return.

Here are four tips from the IRS about unemployment benefits.

1.   You must include all unemployment compensation you received in your total income for the year. You should receive a Form 1099-G, Certain Government Payments. It will show the amount you were paid and the amount of any federal income taxes withheld from your payments.

2.   Types of unemployment benefits include:

  • Benefits paid by a state or the District of Columbia from the Federal Unemployment Trust Fund
  • Railroad unemployment compensation benefits
  • Disability payments from a government program paid as a substitute for unemployment compensation
  • Trade readjustment allowances under the Trade Act of 1974
  • Unemployment assistance under the Disaster Relief and Emergency Assistance Act

3.   You must include benefits from regular union dues paid to you as an unemployed member of a union in your income. However, other rules apply if you contribute to a special union fund and your contributions are not deductible. If this applies to you, only include in income the amount you received from the fund that is more than your contributions.

4.   You can choose to have federal income tax withheld from your unemployment benefits. You make this choice using Form W-4V, Voluntary Withholding Request. If you complete the form and give it to the paying office, they will withhold tax at 10 percent of your payments. If you choose not to have tax withheld, you may have to make estimated tax payments throughout the year.

For more information on unemployment benefits see IRS Publications 17, Your Federal Income Tax, or IRS Publication 525, Taxable and Nontaxable Income. You can download these free booklets and Form W-4V from the website. You may also order them by calling 800-TAX-FORM (800-829-3676).

Additional IRS Resources:


Reporting 2009 Unemployment Benefits

Thursday, February 11th, 2010

This is the time of the year when millions of Americans are beginning to focus their time and energy on preparing their tax returns.  Since 2008 the President and the U.S. Congress have passed many, many tax law changes that could affect you and provide opportunities for you to pay less in Federal taxes and keep more of your hard-earned income.  If you haven’t had an opportunity to do so yet, go the following link on this website:   and look through pages six through nine of that document.  It provides a brief summary for many of these tax law changes.  If you are in doubt, contact your tax prepararer or call the IRS at (800) 829-1040 or go to the IRS website ( and perform a search of that website for the information that you need.  The IRS website also provides publications, forms, and instructions which are available in Acrobat Reader (downloadable) format.

In the past several years far too many Americans have lost their jobs and have received unemployment benefits.  For tax year 2008 and all previous years 100% of these benefits were taxable as wages and income.  In 2009 a change to the tax laws provides that for 2009 up to $2,400.00 in Federal or state unemployment benefits are  excludeable from the income of every American taxpayer.  Married taxpayers who are filing a joint return will each receive the same exclusion amount.  However, supplement unemployment benefits from the fund of a former employer are not eligible for this exclusion. 

Please notice in the IRS bulletin below that there is a special manual computation adjustment that is required by the taxpayer:

“You must subtract $2,400 from the amount in box 1 of Form 1099-G to figure how much of your unemployment compensation is taxable and must be reported on your federal tax return. Do not enter less than zero. “  (Note:  The IRS will also already have a copy of your 2009 1099-G in their files when they receive your 2009 tax return).  For taxpayers who live in states having a state income tax, check the state requirements to confirm that your state is following these same Federal guidelines.  (more…)