In California, which does not tax unemployment benefits, when you certify your work situation every two weeks there is a checkbox where you can request that federal income taxes be withheld. However, as I've seen that they withhold only $3 on a $615 benefit, it is clear to me that their computers are only programmed to withhold federal tax on the $15 state portion and are not withholding for the $600 piece. I have asked my local congressperson's office to contact the CA Employment Development Department (ordinary mortals stand little chance of getting through on the overloaded phone lines to the first level folks and a minuscule chance of then connecting to someone higher up who has the facts) about this and also whether the $600 will be prorated for the last week that starts in July and ends in August or whether there will be no federal benefit for that final week because it ends after July 31.
