Are Unemployment Benefits Taxable?
Unemployment benefits are subject to federal income taxes. Following the end of each calendar year, the New Jersey Department of Labor will provide you with a statement (Form 1099G) of the total amount of benefits you received during the year. This information will also be given to the Internal Revenue Service (IRS).
To help offset future tax liabilities, you may voluntarily choose to have 10% of your weekly unemployment benefits withheld and forwarded to the Internal Revenue Service. If you wish to have federal income tax withheld from your weekly unemployment benefits, please complete and mail the "Instructions for Claiming Dependency Benefits and Requesting Federal Income Tax Withholding" form to your OneStop Career Center (this form will be mailed to you after you file your unemployment claim).
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
- What is the minimum wage in New Jersey?
- When Is Overtime Pay Due?
- What Can I Do If My Employer Does Not Pay Me All The Money I Am Owed?
- How Often Must An Employee Be Paid?
- Are Employers Required To Pay Benefits (Vacation, Sick, Severance, Holiday Pay)?
- Can My Employer Fire Me Without Reason Or Notice?
- Am I Entitled To Rest Or Lunch Breaks?
- When Does An Employer Have To Pay Final Wages To A Terminated Employee?
- Are All Employees Working In New Jersey Covered By The Laws Enforced By The Division Of Wage And Hour Compliance?
- Is An Employment Certificate Required For Employment Of A Minor?
- Are Certain Occupations Prohibited For Minors?
- Are There Limits On The Hours That A Minor May Work?
- What Are The Eligibility Requirements?
- How Do I File An Initial Claim For Unemployment Benefits?
- What Is The Weekly Benefit Amount?
- How Do I File For Continued Weekly Benefits?
- What Will Happen If I Am Overpaid?
- What Can I Do If I Disagree With A Denial Of Benefits?
- What Are The Criteria That Determine Liability For Unemployment Taxes?
- As An Employer, What Are My Responsibilities For Tax And Wage Reporting?
- How Do I Receive The Quarterly Reports I Must File?
- What Specific Information Is Required From Employers On Wage Reports?
- What Are The Eligibility Requirements For A Reimbursement Account?
- How Are Unemployment Benefits Charged To My Account?