Unsure if you should apply for Unemployment Insurance, Pandemic Unemployment Assistance or Pandemic Emergency Unemployment Compensation? This tool can help you decide which program is best for you.
Unemployment Benefits and Taxes
|Unemployment benefits are considered income, and taxed at a rate of 10% for federal taxes and 5.05% for state taxes. You can choose to have you taxes withheld now, or pay them when you file your taxes. Here's what the difference looks like:|
|Not Withholding Tax||Withholding Tax|
|If you choose not to have your taxes withheld, nothing will be deducted from your weekly payments, but you will be responsible for paying federal and state taxes — 15% of the total amount of unemployment payments you received — in one lump sum when filing your taxes.||If you choose to have your taxes withheld, the amount you owe for tax — 15% of your benefit — will be deducted automatically from your weekly payments, and you will not need to pay any additional money on your benefits when you file your taxes|
For more information, including Spanish translation, visit CONNECT.