I collected unemployment for 2 months last year (2006) I have been out of work since then. Do I need to report

Question

these wages to the irs? My accountant said i did not but i dont believe him? I also had no tax withheld. Am i going to end up owing? I live in connecticut. Thank You.

Answer 1

You have to report ALL wages earned and that includes the unemployment checks too! I was out of work once and I was completely burned on my taxes because I didn't know unemployment benefits were taxed.

Answer 2

Unemployment compensation is considered taxable income. If you are filing, then yes, you have to report it. I'd worry about an accountant who told you otherwise, unless you didn't have enough total income for the year to be required to file at all.

And yes, if you owe taxes, and didn't have enough extra withheld somewhere else, then you could end up owing. Or it will reduce your refund, one or the other.

If your total income for the year, including the unemployment compensation, was below the amount where you're required to file, and you don't file, then no, you wouldn't report it.

Answer 3

Believe your accountant. Unemployment is taxable for federal income tax, if you are required to file a tax return. It is included on your tax return. You may or may not end up owing on your federal tax return, since your other withholding may be more than the tax you owe.

Unemployment is taxable income to Connecticut if you are required to file a state tax return.

Answer 4

Unemployment is taxable. However, if your only sources of income were wages and unemployment and the total gross earnings are low enough, you might not have to file.

You really should file even if you aren't required to so you have a verified record of your income.

Answer 5

Call the state I.R.S. why get into hot water.