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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

Note: you will need an Adobe Acrobat Reader to view these publications, which you can get here. (But you probably already have it.)



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Read this disclaimer: This internet site provides information of a general nature for educational purposes only and is not intended to be legal or tax advice. We make no guarantees as to the validity of the information presented. Your particular facts and circumstances, and changes in the law, must be considered when applying U.S. tax law. You should always consult with a competent tax professional licensed in your state with respect to your particular situation.