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jpwilk2334
Returning Member

Is unemployment compensation taxable?

 
1 Best answer

Accepted Solutions
DoninGA
Level 15

Is unemployment compensation taxable?

Yes, unemployment compensation is taxable on a federal tax return and in several states.

For tax year 2020 only the tax code was changed to allow up to $10,200 of unemployment compensation to be excluded from income.  Eligibility was based on the amount of the 2020 AGI you reported on your 2020 tax return and your filing status.

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2 Replies
Bsch4477
Level 15

Is unemployment compensation taxable?

The amount after the $10,200 deduction is taxable. States have different rules. 

DoninGA
Level 15

Is unemployment compensation taxable?

Yes, unemployment compensation is taxable on a federal tax return and in several states.

For tax year 2020 only the tax code was changed to allow up to $10,200 of unemployment compensation to be excluded from income.  Eligibility was based on the amount of the 2020 AGI you reported on your 2020 tax return and your filing status.

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