Will I Get A Tax Refund If I Collected Unemployment?
Over the past few years the poor economy has led to many people losing their jobs and having to depend on governmental programs, such as unemployment, to pay their bills. While people on unemployment may not think they are required to pay taxes, all are required to do so and some may even get a return.
Did You Pay Taxes on Unemployment
The first factor to consider when determining whether you will get a tax refund if you collected unemployment is if you paid taxes when you earned your unemployment income. When you receive unemployment, you have the right to pay income taxes on it now or wait until later. If you paid the taxes when you received the benefits, you may get a return. However, if you did not, you may have to pay taxes when you file your return.
Do You Have Deductions
The second factor to consider when determining whether you will get a tax refund if you collected unemployment is if you have other tax deductions. If you have tax deductions regarding home ownership or donations throughout the year, then there is a good chance that you will receive a tax refund if you paid some taxes on your unemployment income.
Did You Work at All
The third factor to consider when determining whether you will get a tax refund if you collected unemployment is if you worked at some point throughout the year. If you worked during the year, your tax withholding was assuming that you would work the whole year earning that level of income. Since you did not work the whole time, you will get some of the taxes back.
- If I Collected Unemployment Will I Need To Pay Taxes On It?
- Will I Be Penalized If I Don’t Pay Taxes On Unemployment?
- If I Only Earned Unemployment, Will I Have To Pay Taxes?
- How Can I Estimate My Tax Refund?
- Why Use a Tax Credit Instead of a Tax Refund?