What should I do about tax owed on unemployment pay?
Unemployment benefits are taxable income. Your state sends Form 1099-G. If no tax was held back, you may owe when you file.
You can ask your state to hold back federal tax with Form W-4V, or make quarterly estimated tax payments.
If you didn't get a 1099-G, check your state unemployment agency website for the amount.
If a 1099-G shows benefits you never got, someone may have filed in your name. Report it.
Key facts
- Your Form 1099-G
- Whether tax was withheld
- Whether the amount is right
- Your total tax due
Options that may help
Use Form W-4V for future benefits.
If you owe and can't pay, apply online.
Contact your state if benefits were claimed in your name.
Results depend on your situation. Not every case qualifies.
Common questions
Do I have to file if I can't pay?
Yes. File on time even if you can't pay, to avoid the larger late filing penalty.
General information, not tax or legal advice. You can contact the IRS yourself for free at irs.gov.