How to File Unemployment Taxes

The United States Department of Labor provides a contact list for state unemployment tax assistance. Because state requirements regarding unemployment tax vary, contact your state department for a current year tax schedule. In the meantime, there are a few basic facts that will guide you in the process toward filing your unemployment taxes.

Difficulty: Moderately Challenging

Instructions

1. File unemployment taxes using the Turbo Tax or H&R Block Taxcut free online filing services. Refer to the W2 issued by your state department of labor or employment development department.

2. Provide all unemployment income for the year including additional income from a spouse if filing a joint return or other compensation was earned during the tax year as well.

3. Pay the taxes owed. If federal taxes were not deducted from your biweekly unemployment benefits, you will owe these taxes at filing. Please note that the standard federal tax rate of six percent is only deducted upon request.

4. EFile or submit a traditional application. Visit the Internal Revenue Service (IRS) website to use the FreeFile service or call [phone] to request Form 1040. Complete as directed, listing unemployment income for the tax year. The filing program will ask you to record contact information for the employment development department from which the benefits are issued.

Tips & Warnings

• You must file unemployment taxes.

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