Client Resource Center

Practical answers for your questions

1450 Frazee Road, Suite 714 • San Diego, CA 92108
Phone: (619) 297-1040

Unemployment Benefits; Are They Taxable?

Question: Are unemployment benefits subject to federal income tax?

Answer: Yes, unemployment benefits are subject to federal income tax. The government unit that paid you should provide you with a year-end statement (Form 1099-G) showing the amount that is to be included as income on your tax return.

To avoid having a large tax balance due at filing time, you should consider filling out Form W4-V to have the proper amount of income tax withheld from each unemployment check