Reporting Unemployment Compensation

Unemployment compensation is fully taxable and must be reported to the IRS.

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Reporting unemployment compensation

Unemployment compensation is fully taxable, must be reported to the IRS and is located in Box 1 of a 1099-G. Do not include unemployment compensation in your wages. Instead, enter the amount on line 19 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ.

Paying taxes on unemployment benefits

Withhold 15% of your unemployment compensation in order to pay for the taxes levied on unemployment benefits.

File W-4V to request the 15% withhold.

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Related IRS publications

Get more information about taxable unemployment benefits: Publication 525

Form W-4V

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