$600 enhanced UI benefits.

[amcoleary]

Hello,

When I filed for unemployment through the state of FL I selected to have the 10% withheld; however, I see that doesn’t apply to the $600 enhanced UI benefits established by the CARES Act. I was wondering if there is a way to opt to have the $600 taxed, or if I’m just going to have to prepare to pay the taxes on it later when I file during the next season. 

Thank you!

[xmasbaby0 · Accepted solution]

You should go on the state's unemployment website again and look to see if there is a way to have federal tax withheld from the federal portion of the unemployment.  There may be a way.  I am in IL and in IL people can choose to have both federal and state tax withheld from the unemployment.  You are correct to be concerned, since that money is taxable income, and you do not want a big tax bill owed on it next year.

[amcoleary]

I don’t think FL’s unemployment site has that option, but I’ll look again as soon as the site is up and running again. It’s a huge mess here. I’ll probably have to call and see if they’re able to do it, if I can get through.

[xmasbaby0]

Good luck.....In IL it is nearly impossible for people to get through on the phone to the unemployment offices.  The other thing you can do is pay estimated tax ahead of time if your want to, or---set aside some of the money in a separate savings account, sock drawer, whatever works for you, and determine not to touch it until you need to pay your tax bill next year.  (easier said than done, I know...)