Making Ends Meet
Unemployment Benefits Taxes
If you're receiving Unemployment Insurance (UI) benefits, you're required to report on your tax forms the amount of UI you receive during the filing year.
Depending on the amount of other income you earned during the filing year, you may be required to pay income tax on the UI.
It's a good idea to contact the U.S. Internal Revenue Service or other tax professionals when estimating the amount you may need to put aside for payment of this tax. You can choose to have taxes withheld from your UI benefits.