Posts Tagged → do i file taxes for unemployment
How Are Taxes Paid On Unemployment Benefits?
A few days back I read someone querying on a newspaper about unemployment benefits and taxes on it. His query was “I am on unemployment for past eleven months. I don’t know whether I need to file taxes for unemployment. All I had during this year was under the taxable income but I was filing taxes till last year. I also want to know do I file taxes for unemployment compensation.” One of my friends was on unemployment for more than one year but the total amount he owned that time was quite a higher one and he had to pay taxes on that. But this case is a different one. I have read somewhere that unemployment benefits are excluded from taxes as it is not considered as an earned income. Unlike salaries, combat pay, money earned from business, disability benefits etc unemployment benefits is not considered as earned money. Similarly, pension, interests, dividends also are not included in earned money. That is why we do not need to file taxes on the money we get as an unemployment benefits.
