Unemployment can be stressful enough without having to figure out the tax treatment of the unemployment benefits you receive.
Unemployment compensation generally includes, among other forms, state unemployment compensation benefits, but the tax implications depend on the type of program paying the benefits. You must report unemployment compensation on line 19 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ.
Here are four tips from the IRS about unemployment benefits.
For more information on unemployment compensation see IRS Publications 17 and 525. Forms and publications can be downloaded from the IRS Website at www.irs.gov or can be ordered by calling 1-800-829-3676.
TaxACT Free Federal Edition guides you through all tax topics related to unemployment for your biggest refund guaranteed – for free. With TaxACT, everyone can prepare, print and e-file a federal return free! No restrictions. Start your TaxACT Free Federal Edition return now.
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