Unemployment compensation is taxable income on a federal tax return.
To enter unemployment compensation
- Click on Federal Taxes (Personal using Home and Business)
- Click on Wages and Income (Personal Income using Home and Business)
- Click on I'll choose what I work on (if shown)
- Under Unemployment
- On Unemployment and Paid Family Leave, click the start or update button
Or enter unemployment compensation in the Search box located in the upper right of the program screen. Click on Jump to unemployment compensation
If you had taxes withheld from the unemployment compensation -
On the screen What's the total amount you received on your 1099-G? check the box Federal or state income tax was withheld on this payment.