Unemployment benefits are considered taxable income for both Federal and State Income Tax purposes. In most cases no income tax is deducted from your payment until a release form with your signature is received. You may elect to withhold federal income taxes, federal and North Dakota income taxes, or no taxes. If you choose withholding, Federal income taxes will be withheld at a 10% rate. North Dakota income tax is 2%. This means that a total of 12% will be withheld from the payments of those applicants who elect the Federal and State withholding option. You are responsible for any tax liability owed on these 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.