Do I have to pay tax on my unemployment compensation?
Yes. Any unemployment compensation benefits
in excess of $2,400 that you receive from the state or
federal government are taxable income and must be reported on your tax
return. You'll receive a Form 1099-G. The unemployment compensation
benefits are
reportable on Line 3 of Form 1040EZ, Line 13 of Form 1040A, or
Line 19 of Form 1040.
Unemployment
compensation benefits received from a union or private fund to which you contribute are taxable
on your tax return only to
the extent that your unemployment compensation benefits exceed your contributions to the union or private fund.
Report this income on Line 19 of Form 1040.
Related tax
information about unemployment compensation
IRS publications about unemployment compensation: For more tax information about unemployment compensation refer to
IRS Publication 525,Taxable and
Nontaxable Income. Also see
IRS Publication
17,Your Federal Income Tax.
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For further information regarding IRS
rules and regulations and your particular tax or IRS situation you should
consult with a Certified Public Accountant, Enrolled Agent, Attorney, or
other tax advisor.
Taxable and
Nontaxable Income. Also see
IRS 
