Losing your job can be a difficult and uncertain time. We're here to walk you through filing for unemployment for the first time in this first part of a 2-part series.
The federal tax filing deadline for individuals has been extended to May 17, 2021. Quarterly estimated tax payments are still due on April 15, 2021. For additional questions and the latest information on the tax deadline change, visit our “IRS Announced Federal Tax Filing and Payment Deadline Extension” blog post.
For information on the third coronavirus relief package, please visit our “American Rescue Plan: What Does it Mean for You and a Third Stimulus Check” blog post.
Losing your job can be a difficult and uncertain time, it's likely that your income has dropped, but you may now qualify for unemployment compensation. To receive unemployment benefits, you must apply through your state program. Remember that eligibility differs from state to state and the IRS considers unemployment compensation to be taxable income. Your state unemployment department will issue you Form 1099-G and your total amount of compensation will be reported in box one. Compensation typically depends on the length of your employment, your earnings, and the maximum benefit allowed in your state. When filing your taxes, report your unemployment compensation on your federal tax return in the additional income section. You can choose to have income tax withheld to avoid owing a large amount on your tax return. The total federal tax withheld will appear in box four and any state tax withheld will appear in box 11. Remember, keep all of your forms, including your 1099-G, with your tax records. TurboTax is here to support you. For more tax tips and support, visit turbotax.com.