April Walker a CPA (Certified Professional Accountants) and Lead Manager from the Taxation at Association of International says there are two ways of dealing with unemployment benefit taxes. One way is to have a portion of the benefits withheld.
The second option is to make quarterly payments. The next quarterly payment is due on Jan. 21.
Taxes are complicated and hard to understand. If you’re having trouble, Walker says you should ask for help—or check out the IRS website.
A recent survey found that almost 40 percent of people don’t know unemployment benefits are taxable—and over 60 percent haven’t been withholding money from their unemployment pay. That means many of us could be in for a tax surprise in April when taxes are due.