Hello!
Happy to help clear this up for you!
Is unemployment taxed?
Typically, unemployment income is taxable and should be included with any other taxable income you have in the year.
Some states also count unemployment benefits as taxable income. When it’s time to file your taxes, you will need Form 1099-G which will show the amount of unemployment income you received. It will also show any federal taxes you had taken out of your unemployment pay. The 1099-G is only available online in many states, so you may need to log into your unemployment account to get the form.
Are there any tips to lower my taxes if I didn’t have taxes withheld from my unemployment income?
There are a few steps you can take. If you are still receiving unemployment you can request that taxes be taken out by filling out IRS Form W-4V, Voluntary Withholding Request, adjust your withholding on your Form W-4 if you get a new job, or make quarterly estimated tax payments. Also don’t forget, you may now qualify for tax deductions and credits you didn’t before due to lower income from being unemployed.
I hope these are helpful!
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