Client Resource Center

Practical answers for your questions

705 Main Street • Pella, IA 50219
Phone: (641) 628-3737

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