Do you still have to file income tax return if you collect unemployment?

Answer 1

Yes you have to file your income tax return if you are unemployed but still earning income such as interest, dividends etc. but if you are earning no income or below the filing threshold ($6000 if you are in Australia) you do not need to file and have to write in to tell them you are not required to file.

Answer 2

Unemployment compensation you receive from the state or federal government must be included in income on your income tax return. You will receive a Form 1099-G at year end showing the amount you were paid.

Some people receive unemployment compensation from another source:
-Company-financed fund: income will be included in your W-2 wages;
-Private fund to which you voluntarily contribute: only the amounts you receive that are more than your total payments into the fund are taxable.

Though taxes are not normally withheld from unemployment compensation payments, you can make a Voluntary Withholding Request on Form W-4V. (See the attached link.) Alternatively, you can make quarterly estimated tax payments so you don't end up with a big tax bill at year end.

Answer 3

Using the 1040 tax form page 1 line 19 and for the 2009 tax year you would subtract the first 2400 of the unemployment that you received from the gross amount that has been reported to you on the 1099-G because for the 2009 tax year the first 2400 received is free of income tax.

We would suggest that you contact a local AARP TAX AIDE volunteer site in your area for some free face to face assistance and ask someone at the site if they can assist you with your income tax return. You can copy and paste the below web address, found in the Related Link, in your address bar and see what sites you can find available within a 150 mile radius.
Same as always...and like anyone with taxable income (UI generally is). You will receive a 1099 for what you received in Jan.

Answer 4

Yes, the first $2400 in benefits is exempt, but the benefits must be reported, along with any other income.

Answer 5

Yes and you would also report all other gross worldwide income on your 1040 income tax return.

Answer 6

You had better! It's "income", and you are taxed on it! Check with your local unemployment agency for the paperwork you'll need.