Any unemployment insurance benefits that you receive must be reported as part of your gross income for both state and federal tax purposes. To assist you in filing your tax returns, you will be sent an IRS Form 1099G showing the total amount of unemployment insurance benefits paid to you during the previous year. You may elect to have taxes deducted from unemployment insurance checks. You can choose to have either Federal taxes, Maryland state taxes, both or neither deducted from your check. You must sign and return the W4 form before any taxes can be withheld from your unemployment insurance benefits.
This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified employment lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact an attorney in your area from our directory to discuss your specific legal situation.