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Kiplinger
Kiplinger
Business
Katelyn Washington

Is Unemployment Taxable? A State-by-State Guide

Magnifying glass over keyboard with red unemployment benefits key.

If you’re waiting for an unemployment check, you’ll have to deduct federal income tax on your benefits. Not to mention, your compensation may face some extra taxes.

That’s because some states consider unemployment benefits taxable income, while others don’t. So, how much taxes you face will largely depend on where you live.

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