Tax Tips: Unemployment

Photo by: WDAY Radio Staff
Photo by: WDAY Radio Staff

(New York, NY) -- There's no getting around it, if you received unemployment benefits in 2022, that money will be subject to income taxes.

The IRS treats your unemployment payments like any other regular income, and you must include that income on your tax return.

CPA Brian Kottek says it's a good idea to elect to have taxes withheld from your weekly benefits. It may cover your taxes or at least ensure you're not faced with a potentially huge bill come tax time.

If you can't afford to pay the tax due, you can request an installment agreement from the IRS.

You should also check with your accountant to see how unemployment benefits may impact other tax benefits, such as tax credits.