How are unemployment benefits taxed?
Friday, May 15, 2020
Millions of Americans who have filed for unemployment in recent weeks may be wondering if their benefits will be taxed.
The answer is yes.
However, there’s a difference that could cause Americans to pay less tax relative to levies on a typical paycheck.
“Unemployment benefits are taxed just like income,” said Michele Evermore, senior policy analyst at the National Employment Law Project.