Are Unemployment Insurance Benefits Taxable?

Any unemployment insurance benefits you receive are fully taxable income if you are required to file a tax return. At the time you file your claim, you may elect to have the Department withhold state and/or federal tax on the benefits you receive. You may change this withholding election one time during the benefit year.

The department will send you a 1099­G form at the end of the calendar year showing how much in benefits you received during the previous year. It also shows the amount of taxes, if any, that were withheld. You should use this form when you file your income taxes to report benefits received and any taxes withheld by the department.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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