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.
HOW TO REPORT YOUR UNEMPLOYMENT
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.