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.
STATES THAT TAX UNEMPLOYMENT BENEFITS
AZ, AR, CO, CT, DE, DC, GA, HI, ID, IL, IN, IA, KS, KY, LA, MA, ME, MD, MI, MN, MS, MO, NB, NM, NY,NC, ND, OH, OK, OR, RI, SC, UT, VT, WV, WI
STATES THAT DO NOT TAX UNEMPLOYMENT BENEFITS on the state return
AK, CA, FL, MT, NH, NJ, NV ,PA, SD, TN, TX, VA, WA, WY
Xmasbaby0 is correct. Yes, unemployment benefits are taxable and you should get Form 1099-G. You'll either get it mailed to your mailing address or you can look it up online on your state's Department of Employment security website.
Important: If your 1099-G shows an amount in Box 1, go here for alternate instructions, as the steps below won't work.
Otherwise, if your 1099-G has amounts in Box 2, follow these instructions:
- With your return open in TurboTax, search for 1099–G (don't forget the dash!) and then select the Jump to link at the top of your search results.
- This will take you to Did you have any of these types of income? Answer Yes.
- On the following screen, check the first box State or local income tax refunds and continue.
- Answer Yes to Did you get a state or local tax refund?
You should end up on the Tell us about your refund screen.
- Where do I report a 1099-G for unemployment or paid family leave?
- Did I itemize last year?
- Do I need to report the state or local refund I got last year? Is it taxable?
- Where do I find last year's state/local refund so I can report it on this year's taxes?
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