Unemployment Compensation

With the record unemployment in the US, more and more people will receive unemployment compensation and benefits.

A couple of important facts. Unemployment compensation is taxable and should be included in the taxpayer’s gross income. In some cases, a taxpayer may be required to make estimated quarterly tax payments based on the unepmloyment compensation received, or he / she may voluntarily choose to have taxes deducted from his / her unemployment compensation payments. This can be done with Form W-4G.

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