Are Unemployment Benefits Taxable?

All unemployment insurance benefits are fully taxable on your federal and state income taxes. You have the option of having federal and/or state taxes withheld from your benefit payments. Deductions are 10 percent of the gross benefit payment for federal taxes and 5 percent of the gross benefit payment for state taxes. If you elect to have taxes deducted, you will have to complete and sign the Tax Withholding Agreement form 60­0360.

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.

Additional Employment Law for Employees Articles

Search LawInfo's Employment Law for Employees Resources