Do I Have To Pay Taxes On Unemployment Benefits?

Yes. Unemployment benefits are taxable income and are subject to both federal and state taxes. The Department will send you an IRS form 1099­G for tax reporting purposes. You may choose to have fifteen percent of your unemployment benefit payment withheld to pay federal taxes. There is no withholding provision for state taxes.

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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