Are Unemployment Insurance Payments Taxable?

Any unemployment insurance benefits that you receive must be reported as part of your gross income for both state and federal tax purposes. To assist you in filing your tax returns, you will be sent an IRS Form 1099­G showing the total amount of unemployment insurance benefits paid to you during the previous year. You may elect to have taxes deducted from unemployment insurance checks. You can choose to have either Federal taxes, Maryland state taxes, both or neither deducted from your check. You must sign and return the W­4 form before any taxes can be withheld from your unemployment insurance benefits.

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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