Is the unemployment taxed?

[Clair de Lune]

I've always wondered this.

Is it taxed? If so how much percent?

Why do they tax it to begin with if the money comes from themselves...

 

[spidey07]

Yes. It's income. It's taxed like normal wages.

 

[sdifox]

EI is taxed... Best part of Canadian EI is if you find a job that year and make more than 45k, you have to pay it back... WTF was I paying premium all the years of working full time for?

 

[bctbct]

I believe the first $2500 is currently untaxed due to a stimulus package.

 

[her209]

http://www.irs.gov/taxtopics/tc418.html

 

[FoBoT]

remember that bribes and income from criminal activity is also taxable

Bribes. If you receive a bribe, include it in your income.

Illegal income. Illegal income, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.

Kickbacks. You must include kickbacks, side commissions, push money or similar payments you receive in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040), if from your self-employment activity.
Example: You sell cars and help arrange car insurance for buyers. Insurance brokers pay back part of their commissions to you for referring customers to them. You must include the kickbacks in your income.

Stolen property. If you steal property, you must report its fair market value in your income in the year you steal it unless, in the same year, you return it to its rightful owner. Personally, I?d report it as "miscellaneous" income rather than "stolen property."

http://articles.moneycentral.m...therTaxableIncome.aspx

 

[puffff]

Originally posted by: FoBoT
remember that bribes and income from criminal activity is also taxable

Bribes. If you receive a bribe, include it in your income.

Illegal income. Illegal income, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.

Kickbacks. You must include kickbacks, side commissions, push money or similar payments you receive in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040), if from your self-employment activity.
Example: You sell cars and help arrange car insurance for buyers. Insurance brokers pay back part of their commissions to you for referring customers to them. You must include the kickbacks in your income.

Stolen property. If you steal property, you must report its fair market value in your income in the year you steal it unless, in the same year, you return it to its rightful owner. Personally, I?d report it as "miscellaneous" income rather than "stolen property."

http://articles.moneycentral.m...therTaxableIncome.aspx

If I don't report certain income, do I have to report it as stolen income since I technically stole from the IRS?

 

[Engineer]

Originally posted by: bctbct
I believe the first $2500 is currently untaxed due to a stimulus package.

I thought it was $2,400, but regardless, you are correct. The first $2,400 or $2,500 is "federal" tax exempt. I do not know about the state level.

 

[BoomerD]

Every state is different. AFAIK, (unless this was changed in the recent budget debacle) Kahleeforneeya does not tax unemployment insurance benefits. I hadn't heard about the exemption from the stimulus package...but that's good.

Unemployment USED to be non-taxable for federal taxes as well. I thought that was changed under Reagan, but it may have been during the Carter years.

 

[JohnAn2112]

IIRC, California gives you an option for taxes when you fill out the bi-weekly form. I'm not sure about the other states.