Unemployment Insurance for State of Iliinois...?

Question

Never used it before wondering what happens if you do use it. Is it true that you have to pay back all the money they give you when you file taxes next yr? I've heard it really messes up your taxes.

Answer 1

No, you don't pay back all of the money - but it is taxable income just like money you earn from a job. It's wise to have them deduct income tax from your unemployment comp payments just like they would from a job, or you'll end up owing the tax when you file your return.