Here are five important facts from the IRS about unemployment compensation:
1. You must include all unemployment compensation in your income for the year.
2. There are several types of unemployment compensation.
3. You must include benefits paid to you from regular union dues in your income.
4. You can choose to have federal income tax withheld from your unemployment.
5. If you are facing financial difficulties, you should visit IRS.gov. “What Ifs” for Struggling Taxpayers explains the tax effects of events such as
the loss of a job.
Courtesy of IRS Issue Number: IRS Tax Tip 2014-25
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