Tax Tips Unemployed Doesn't Mean Untaxed Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by Published Oct 17, 2008 - [Updated Jul 24, 2019] 1 min read As the economy sinks and unemployment rises, there’s been talk in Washington about temporarily suspending income taxes on unemployment benefits. What, you say? If by misfortune I’m unemployed, I still might have to pay taxes? Yes, you might. At the end of the year you’ve taking unemployment benefits, you’ll get a Form 1099-G (and so will the IRS) reporting what you’ve been paid. It’s good to know this up front, however, because you need to set aside enough money to pay any income taxes you might owe. Depending on your circumstances, you might even be required to make quarterly estimated income tax payments because you’re no longer having taxes withheld by your employer. (Estimated taxes are what the IRS expects people to pay when their income is not subject to withholding, such as investment or self-employment income.) If you want to play it safe, though, the IRS gives you a way. Fill out Form W-4V to have 10 percent of your benefits withheld for federal income taxes. You can do this online, but then you need to make a copy and sign it. Send it to your state unemployment office. Previous Post Understanding Those Part-Year Returns Next Post Waiting…For Your Tax Forms? Written by More from Leave a ReplyCancel reply Browse Related Articles Tax News Intuit TurboTax April Report: A Look at Refunds and S… Tax Planning April 15 is the Tax Deadline: 6 Things You Need to Know… Tax Planning Unable to Pay Your Tax Bill? Here’s What To Do Tax Tips Tax Credits 101: What They Are & How They Work Business How to Know if You Should Invest in Business Insurance Tax Deductions and Credits What Is the Standard Tax Deduction for 2023 – 202… 401K, IRA, Stocks Should You Use Your 401(k) or Retirement to Pay Off Deb… Tax Planning What Happens If You Don’t Pay Taxes? Understanding Pe… Tax Deductions and Credits Family Taxes: Take Advantage of Tax Savings Taxes 101 How Much Do You Have to Make to File Taxes? Demystifyin…