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.
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Thank you for your question about how and where to enter your Unemployment Compensation! We appreciate the opportunity to assist you with this question:
You report your unemployment compensation on Schedule 1 of your federal tax return in the Additional Income section. The amount will be carried to the main Form 1040. Remember to keep all of your forms, including any 1099-G form you receive, with your tax records.
State unemployment divisions issue an IRS Form 1099-G to each individual who receives unemployment benefits during the year. On this form, you’ll see the total amount of your compensation reported in Box 1.
When you receive benefits, you can usually choose to have income taxes withheld from your compensation to avoid owing a large amount of tax on your tax returns. If you choose to have income tax withheld from your benefits,
- The total federal tax withheld will appear in Box 4.
- The state tax withheld will appear in Box 11.
Tax impact of benefits
Unemployment benefits are included along with your other income such as wages, salaries, and bank interest (For tax year 2020, the first $10,200 of unemployment income are tax free for taxpayers with an AGI of less than $150,000). The total amount of income you receive, including your unemployment benefits, and your filing status will determine if you need to file a tax return.
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