Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Sep 9, 2021 11:52:40 AM

This year’s unemployment tax

Will we have to pay taxes on this years unemployment?

0 1 192
1 Best answer
Employee Tax Expert
Sep 9, 2021 1:03:48 PM

@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. 

1 Replies
Employee Tax Expert
Sep 9, 2021 1:03:48 PM

@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.