Many people don’t realize it, but you must pay taxes on the money you receive from unemployment.
Your benefits are considered taxable income!
Although it may seem unfair, unemployment is designed to be temporary, so it’s important that you try to get a permanent job as soon as possible.
To avoid paying a lump sum of taxes at the end of the year, you can have 10% of your benefits payments automatically withheld for federal taxes.
You can also make quarterly tax payments on your own. These payments are due on January 15, April 15, July 15, and October 15. If you choose to make these payments on your own, you are responsible for any late fees or other charges.