Kash Yajnik shared about unemployment compensation linkage to taxable income. A few points to know:
- Unemployment Compensation is Taxable at Federal Level.
- Taxpayer receives 1099-G Form stating the Taxable Unemployment Income and Taxes Withheld by Jan 30 of the following year.
- Union Benefits may also be Taxable.
- Generally, it is a good idea to withhold Taxes form the Unemployment Compensation to avoid future Tax burden. Fill out Form W- 4V to withhold Taxes from Unemployment Income.
Disclaimer: Please note that this is not a tax advice, and may not be applicable to your case. Every individual has different tax case. Please discuss your case with your tax consultant or call Kash Yajnik at Yajnik & Mehta Associates.