Unemployment Benefits Question.

Hi Chevee! I'm also drawing unemployment. In our state, we can choose to have Federal taxes withheld from our weekly unemployment check or not. For the first 13 weeks I was on unemployment I did not have taxes taken out but my benefits ran out and I had to do another claim. This time I chose to have the tax deducted and it is 10% of my weekly benefit amount. From what I was told by the unemployment office I have to use up all my state unemployment benefits before I can be eligible for the federal program. However, when I read the information posted on my state's unemployment website, it says something totally different. I did find this online about the new stimulus plan: For tax year 2009, people getting unemployment benefits do not have to pay federal taxes on the first $2,400.00 they get. Any unemployment benefits above $2,400.00 per person are subject to federal income tax. Now I'm wondering the same thing that you are. If we don't have to pay federal taxes, why are they being deducted? Guess I'll have to make a call to the unemployment office.

I do not have an explanation. I just am going to guess that it will all come back to you as a refund. Perhaps your state is taking taxes out. I am sure you can tell by looking at the stub. We often find the state going opposite of the Federal in our taxes and stuff.

Back before I got the job I have now, the only thing I remember being deducted from my Unemployment checks was the 10% that I alloted to be deducted from there. So personally it sounds like somewhere there is an issue with yours that you need to question for sure. Wishing you the Best.

The new stimulus plan states that taxes will not be taken out of the first $2400.00, not months or weeks. When you started your unemployment, you had the option to have taxes taken out or not. When you file taxes next year, you will receive a 1099G, which will show how much you received and how much taxes were taken out. All unemployment money is taxable by the federal government, but not by the state.

Hi Chevee, I don't understand that at all, have you enquired about to the benefit office about it? or the tax office as it maybe a mistake. Tamara

Hey chevee~ I don't really know, but you should contact your local unemployment office or the state where you live. I never had taxes taken out of my unemployment check. I haven't collected in years not so things may have changed since then. But, you do have to ask them to know. And as far as I know you were only allowed to collect for 24 weeks unless there was an extenion of usually 13 weeks which I definitely believe there is now. So I suggest that you get in touch with you unemployment office or state asap to find out!