Are the federal additions to unemployment insurance taxable?
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Yes----all of your unemployment is taxable including the amount that was added by the federal government. For 2020 returns, Congress waived federal tax on the first $10,200 of unemployment. That was only for tax year 2020. For tax year 2021, it is all taxable on your federal return and possibly on your state return, depending on your state.
UNEMPLOYMENT COMPENSATION
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.
Thanks for the quick response. Bummer though!
Indeed it is for many people. Sorry.
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