Unemployment Benefits are Taxable
Those who claimed unemployment benefits in 2014 will need to file a federal 1099-G Form. The 1099-G Form reports the payments received during the calendar year for federal income tax returns. If you had taxes withheld from your claim and did not receive a Form 1099-G in the mail, you may access the form online.
While claiming unemployment, you can choose to have the DES withhold 10 percent of your weekly benefits for federal income tax. If you choose not to have the DES withhold your taxes, you must submit the tax amount at the end of the year.
You must authorize with the DES to request or change federal tax withholding from benefit payments by filling out the Authorization for Federal Income Tax Withholding from Unemployment Benefits form. You can change your withholding information at any time. The changes will be effective the week your authorization is received.
If you have questions about the 1099-G Form, e-mail us at email@example.com.