Saturday, March 10, 2012

UNEMPLOYMENT BENEFITS

Q:  I was laid off last year and fortunately I received unemployment benefits.  That really helps as I look for work.   I received a 1099 form in the mail.  Do I really have to pay tax on this?

A:  I am sorry to say but, unemployment benefits are considered taxable income.  You will need to include this 1099 when you file your tax returns.