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Level 2
posted Jun 6, 2019 7:44:36 AM

Do I have to claim al unemployment compensation if I contributed to the insurance?

I have had about $10 per month deducted from my paycheck for Pennsylvania unemployment compensation. This has been going on for years. I received unemployment payments from Pennsylvania in 2017. Since I contributed to the insurance do I need to claim all the compensation or can I deduct a portion since I paid a portion of the insurance premium?

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1 Best answer
New Member
Jun 6, 2019 7:44:37 AM

No.

The amount you have paid out of your pay for unemployment over the years is considered a tax and not an insurance in the sense that it is not voluntary. 

Every employed person pays in and if they are subsequently unemployed, then they can collect from the fund if they meet the required number of hours worked in the previous quarters/years.

Your argument swayed me, but it won't sway the IRS.

2 Replies
New Member
Jun 6, 2019 7:44:37 AM

No.

The amount you have paid out of your pay for unemployment over the years is considered a tax and not an insurance in the sense that it is not voluntary. 

Every employed person pays in and if they are subsequently unemployed, then they can collect from the fund if they meet the required number of hours worked in the previous quarters/years.

Your argument swayed me, but it won't sway the IRS.

Level 2
Jun 6, 2019 7:44:38 AM

Thanks for the answer - while not what I wanted to hear it is what I expected. Guess it's like social security -you pay into it for decades but can't take your contributions into account when you have you pay tax on your social security earnings.