Yes. Unemployment compensation is fully taxable on your federal tax return .
Reporting Unemployment
- Form 1099-G: You should receive this form from your state agency by January 31. It shows the total unemployment compensation paid to you in Box 1 .
- Tax Withholding: You may choose to have federal income tax withheld from your unemployment payments to avoid a large tax bill when you file. This withholding appears in Box 4 of your 1099-G.
Official IRS Resource:Unemployment Compensation
