What about unemployment or retirement income?

What about unemployment income?

If you received unemployment, you might wonder how much of that income is taxable and how to report it. The IRS considers unemployment benefits to be taxable income, which you must report on your federal tax return. Some states also count unemployment as taxable.

You should receive a Form 1099-G from your state unemployment agency listing the total amount of money you received during the tax year.

What about retirement income?

Whether you enjoyed some of your hard-earned retirement income during the tax year or you took an early withdrawal from retirement funds, we’ll need to report that money as income on your tax return. Retirement income includes withdrawals from pensions, annuities, 401(k), and IRA accounts, to name a few. Your fund or financial institution will issue a Form 1099-R, which we’ll use to report your retirement income. Tax rates and any penalties for early withdrawal will vary depending on the fund. And if you’re over 65, you may qualify for certain tax credits.