Unemployment compensation

Forum|Forum|6 years ago
February 22, 2020
3 replies
38 views

My husband received state unemployment insurance benefits in 2019. Page 82 of the Instructions for Form 1040 states “if you made contributions to a governmental unemployment compensation program or to a governmental paid family leave program and you aren’t itemizing deductions, reduce the amount you report on line 7 (of Schedule 1) by those contributions.” We are not itemizing. Can we deduct contributions to both unemployment and family leave programs? Can we deduct contributions paid by both my husband and me?

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JohnB5677

Level 15

Probably not. Your husband received unemployment compensation, he did not pay into the pool. You would not ordinarily make contributions unless you are an employer.

Unemployment compensation is taxable and is posted under the INCOME section of your tax return.

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My3BeaglesAuthor

Level 2

My husband collected only three weeks of unemployment compensation in 2019 so, yes, he did pay for this coverage the rest of the year. We live and work in New Jersey so we are required by the state to pay into both the unemployment benefit insurance program and the family leave program. The IRS says the contributions are deductible from the benefit he received. My question is which contributions are deductible? His contributions to both programs or to only the unemployment program? Are my (when we file as a married couple) contributions also deductible from the benefit he received?

ThomasM125

Level 15

You are correct, the instructions to form 1040 do state that you can reduce your unemployment benefits by amounts paid to a "Government unemployment compensation program or to a government paid family leave program."

Based on the instructions, I assume both contributions are allowable, as it is not stated that you must choose one or the other.

You should add both contributions together, and subtract them from the benefit amount you received for the year, and enter the net amount as you unemployment compensation for the year.

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