unemployment benefits are taxable
Quoting your recent article "How much tax do you pay on it?
How much tax you’re going to pay on your unemployment benefits depends on the federal and state tax rate. While the federal tax rate for unemployment benefits is 10%, the state one varies from 4% to 10%."
This is grossly incorrect....unemployment benefits are added to your other income for the year and the NET TAXABLE INCOME is taxed on a scaled basis depending on what the net taxable income is...It could be 0%, could be 10%, could be 12%, could be 22% or higher. IT IS NOT A FLAT 10%
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Don kjhgghx
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Yep. The author is incorrect. CA does deduct 10% if you ask them to. But your tax is whatever it is. I just filed on 7-14. My work income, unemployment, interest income, and pension all got lumped togther. Then I looked up my tax in the chart. If you want to think of unemployment as your first income, then it is at 10% (or what ever the lowest bracket is). But that will make no difference as to what your adjusted gross income is.