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taxes and unemployment?

taxes and unemployment?

Taxes and unemployment?
does anyone know if your on unemployment and are having taxes taken out do you get those taxes at the end of the year like regular taxes ?

Thank you and God Bless

Best Answer

the first $2400 of unemployment benefits each year is tax free.
you will have to tell the unemployment office to withhold federal income tax or you will wind up having to pay it out of your own pocket come tax return time

whether you get a refund on any of that tax withheld depends on your taxable income and total tax withheld at the end of the year - refunds are a "right" of existence.
everyone is not guaranteed a refund every year or a refund of a certain amount - it all depends on the info on your tax return

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Exactly like regular taxes. On a tax return form you calculate what you owe based on your income including unemployment benefits, and show what was withheld. If too much was withheld, the extra is refunded. If not enough was withheld, then you have to pay the additional amount that you owe.

You might get some of it, all or it, or none of it back.

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The short answer is yes. Unemployment benefits are considered to be "income" by the IRS and is part of your "Adjusted Gross Income" (AGI) just like your wages/salary. The AGI determines how much income tax you pay for the calendar year. If your total tax witholdings exceed the amount of tax you owe, then you get a refund.

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Yes you do, or do NOT, lol. Just depending on filing status, dependants, etc. Enemployment wages are treated EXACTLY like regular wages from an employer.

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When I was on unemployment 2 years ago, I still owed State taxes when I did my taxes.

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