Did You Receive
Unemployment Benefits?
Have the right tax withheld for 2020
• Do I have to report unemployment benefits on
my federal income tax return?
Yes, any unemployment compensation received
during the year must be reported on your federal
tax return.
• How will I know how much unemployment
compensation I received?
If you received unemployment compensation
during the year, you should receive Form 1099-G
from your state’s unemployment ofce.
• How will unemployment compensation affect
my tax return?
If you do not have taxes withheld from your
unemployment compensation, it could result in a
tax liability.
• Can I have federal income tax withheld from
my unemployment compensation?
Yes, you can choose to have federal income
tax withheld from your unemployment benefitsby
submitting a Form 84V, Voluntary Withholding
Request, to your state’s unemployment office.
• If I am no longer collecting unemployment
benefits, how can I pay the tax due?
You can make estimated tax payments at www.
irs.gov/Form 1040-ES and/or increase your
withholding once you have a new job. You can
check your estimated withholding using the
calculator at www.irs.gov/W4app. See www.irs.
gov/payments for more payment options.
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According to The Bureau of Labor Statistics,
over 23 million U.S. workers have filed for
unemployment this year nationwide.
For the first time, some self-employed
workers qualified for unemployment benefits.
For more information, contact your
state’s unemployment office and visit:
www.irs.gov/UC
Unemployment benefits are taxable
Unemployment benets must be reported on your federal tax return. A record number
of Americans are applying for unemployment compensation due to the COVID-19
Outbreak. If you received unemployment benets, as well as the additional $600 per
week in coronavirus relief any time during the year, your tax return may be affected.