Do unemployment benefits affect tax returns?
(NEW YORK, NEW YORK, USA)
Response To: Do unemployment benefits affect tax returns?
Yes, unemployment benefits will affect your tax return.
See page 28 Table 3-15 for taxes other than Federal income tax.INCOME TAX—Federal law requires states to offer workers the opportunity to voluntarily have Federal income tax withheld from UI benefits at the rate of 10 percent. Federal law also permits states to withhold state and local income tax from UI benefits. The following table indicates which states offer workers the opportunity to have state (and/or local) income taxes withheld.
Of course state and local tax will be dependent on which state.
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