Unemployment Compensation
Updated on: Aug 1, 2018
Unemployment compensation you receive during the year is income.
The new tax law didn’t make any changes to unemployment compensation.
Previous (2017)
Unemployment compensation or insurance benefits that you receive from the United States or a state government is income in the year you receive it.
Change
The new tax didn’t make any changes to unemployment compensation.
How will this affect me?
Scenario 1
In 2018, Wendell received $10,480 in unemployment compensation from the State of Texas. He reports the full amount as income on his tax return.