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valari12
Level 1

This year’s unemployment tax

Will we have to pay taxes on this years unemployment?

1 Best answer

Accepted Solutions
AdamNe
Employee Tax Expert

This year’s unemployment tax

@valari12 Thanks for the question.

 

Most likely, yes. There IRS has made no indication that legislation is underway to exclude unemployment compensation as it was in 2020. However, we never know! As of right now, unemployment benefits are taxable, so from a planning perspective it is prudent to assume that will not change. 

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1 Reply
AdamNe
Employee Tax Expert

This year’s unemployment tax

@valari12 Thanks for the question.

 

Most likely, yes. There IRS has made no indication that legislation is underway to exclude unemployment compensation as it was in 2020. However, we never know! As of right now, unemployment benefits are taxable, so from a planning perspective it is prudent to assume that will not change. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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