Tag Archives: The American Rescue Plan

Did you collect unemployment compensation from a state or local government assistance program?

Unemployment compensation can provide valuable relief when taxpayers are experiencing temporary job loss, but there’s often an unpleasant surprise that follows these payments: This income is taxable at the federal level. If you don’t have taxes withheld from the payments, you may owe a big tax bill when you file your return. If you received unemployment payments during the year you should receive Form 1099G, Certain Government Payments. The amount of unemployment compensation you received from all sources, including federal, state and local government assistance programs, will be shown in Box 1 of this form; the amount of federal tax that