When filing for the year, does Unemployment get taxed at 10% for my wife's income separately? Or will it be taxed at 28% for our married jointly income cause of my wages?

[xmasbaby0 · Accepted solution]

All of your combined income will be taxed at your tax rate on your joint return.

[Hal_Al]

It will be taxed at 28% because it is added to your total joint income and taxed at your  top tax bracket.

But filing separately will not save you anything. She may only pay 10% on her individual income; but more of your income will be taxed at 28% because of the lower thresholds on the Married Filing Separately ( MFS)  brackets.

You can use this tool to do trial returns both ways. https://turbotax.intuit.com/tax-tools/calculators/taxcaster/?s=1

[SweetieJean]

Unemployment comp withholding is normally done at 10%, but your actual tax rate will be applied.