Taxation of Unemployment Benefits

Scott, Christine

Library of Congress. Congressional Research Service.

关键词: Taxation;    Unemployment insurance;    Labor;   

RP-ID  :  RS21356
RP-ID  :  RS21356_2005Jan14

美国|英语

来源: UNT Digital Library

【 摘 要 】

Unemployment compensation (UC) benefits have been fully subject to the federal income tax since the passage of the Tax Reform Act of 1986 (P.L. 99-514). Individuals who receive UC benefits during a year may elect to have the federal (and in some cases state) income tax withheld from their benefits. Legislation was introduced in the 108th Congress that would have repealed the taxation of UC benefits, provided a two-year suspension of the taxation of UC benefits, or transferred the proceeds from taxing UC benefits to the Unemployment Trust Fund. This report provides an overview of the taxation of UC benefits and legislation related to taxing UC benefits.