Are Unemployment Benefits Taxable?

Yes. You may voluntarily elect to have 10% of your gross benefits deducted and withheld for Federal Income Tax purposes. Federal Income Tax will be deducted after all mandatory deductions (Benefits Offset, Child Support) have been withheld. You may change your election, in writing, at any time. An Election Form for Withholding of Federal Income Tax (Form 453) is available for this purpose.

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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