If you have been laid off or not working and  you have received unemployment, don’t let curiosity kill the cat when it comes to reporting wages. Unemployment is

in fact taxable income that needs to be reported to the irs. Once you get

the unemployment your thankful, but its less then what you are used to so it makes it much more difficult to

voluntarily have someone take some of the 60 percent of your normal wages you would get.


Your states unem­ploy­ment agency will at the end of the year give you a form 1099G Just like a w2 this form goes to you and the

IRS. The form will also show any tax­es you had with­held. You would then report these amounts on line 19 of Form 1040,  or line 13 of Form 1040A, or line 3 of Form 1040-EZ when you file your tax

return. Your unem­ploy­ment income is taxed right along with any oth­er income you  may have earned dur­ing the year. Some oth­er income that maybe report­ed on the same form 1099g will includes

state unem­ploy­ment insur­ance ben­e­fits and ben­e­fits paid to you by a state. It also includes rail­road unem­ploy­ment com­pen­sa­tion ben­e­fits and dis­abil­i­ty ben­e­fits paid as a sub­sti­tute for

unem­ploy­ment com­pen­sa­tion, but not worker’s com­pen­sa­tion.




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