Yes----you are required to include unemployment compensation on your federal tax return.
UNEMPLOYMENT COMPENSATION
Unemployment compensation is taxable on your federal return.
You will have to enter a 1099G that is issued by your state.
Some states will mail out the 1099G. Or you might need to go to your state’s unemployment website and use the password, etc. that you have been using to certify for weekly benefits to get your 1099G from the state’s site.
Enter your 1099G in Federal>Wages & Income>Unemployment
Go through the screens very carefully, making sure to enter any federal/state tax you had withheld from the unemployment.
Most states with a state income tax do tax unemployment benefits.
AL, CA, DC, NH, NJ, and PA do not tax unemployment
Yes you need to enter it. You get a 1099G for Unemployment.
Enter a 1099G for unemployment under
Federal on left
Wages
Unemployment - Click the Start or Update Button
Unless you already filed without it. Then post back.
@Michelle1215 Oh....did you mean can you add unemployment using the Free Edition? No. If you had unemployment you must upgrade to a paid version. The Free Edition does not support entering unemployment.
Or—-Use this IRS site for other ways to file for free. There are 8 free software versions available from the IRS Free File site