• James D. Lynch

Unemployment Benefits are Taxable Income

Unemployment benefits are taxable income and must be reported on your federal income tax return. With millions of people receiving unemployment compensation in 2020 due to the pandemic, many people may wind up with smaller refunds or even taxes owed if taxes were not withheld from their unemployment benefits.

Taxpayers can have tax withheld from their benefits. This will help them to avoid owing taxes on this income when they file their federal income tax return next year. Withholding taxes from unemployment benefits is voluntary.

Taxpayers who receive unemployment benefits will receive Form 1099-G. This form shows how much was paid to the taxpayer during the year (box 1) and how much money was withheld for federal income tax (box 4).

  • LinkedIn Social Icon
  • Facebook Social Icon
  • Twitter Social Icon
  • alignable_square
  • Yelp Social Icon
  • avvo
  • Justia-Icon
  • lawyer_com favicon
  • taxbuzz
  • ptin-seal
  • 170927-usnsquarelogo-design
  • favicon-32x32
  • mail icon

Law Office of James D. Lynch, PLLC


(512) 745-6347 - Austin / Round Rock

‪(210) 201-6317‬ - San Antonio

(713) 257-9577 - Houston

(214) 489-7506 - Dallas

(915) 247-6094 - El Paso


(714) 745-3875 - Los Angeles / Orange County

(760) 406-0542 - Palm Springs / Coachella Valley

(619) 326-9020 - San Diego

©2021 by Law Office of James D. Lynch, PLLC. The information contained in this website is for informational purposes and is not to be considered legal advice.  Any correspondence between you and the Law Office of James D. Lynch is not intended to create an attorney-client relationship.  Please do not send confidential information to us until after an attorney-client relationship has been established by an engagement letter signed by the proposed client and our attorney.