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).

Get Help from an Experienced Employment Law Attorney

Have you been discriminated against by a potential or current employer -- as a job applicant or current employee? To best protect your legal rights you should discuss your situation with an employment lawyer. Meet with a local employment for employees attorney sooner rather than later to protect your rights.

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