Check Your Unemployment Withholding

         Many filed for Unemployment Benefits for the first time last year and received those payments during a very difficult time. Now as we file our taxes, it is thought that less than half of those who had Unemployment income had their taxes withheld. This can lead to a great shock when those Federal Tax Returns are filed. All of that income is taxable, including the enhanced federal payments that were available most of the year. This can lead to tens of thousands of dollars in taxes owed this year.

          If you are still collecting Unemployment Benefits, check your withholding. There should be a simple option that allows you to voluntarily withhold the necessary amount to avoid any unwanted surprises next year. If you are unsure of what your status is, you can always check with your Qualified Tax Professional.

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