Listener Question: Do you have to pay taxes on unemployment?
Nicole gives a listener advice on what to do about taxes if you filed for unemployment last year, and debunks Dave Ramsey\u2019s statements that people collecting the stimulus check are "screwed." Nicole says: You are not screwed.\n\nFrom This Episode:\nReport your unemployment benefits on your Federal Tax Return, which will say \u201cForm 1040\u201d.\nYou\u2019ll need Form 1099-G, which you should have received from your state. You can see how much you received in unemployment benefits in Box 1.\nYou\u2019ll need to report this amount on your tax return on line 7, Schedule 1.\xa0\nYou also have to report any taxes that were withheld from your unemployment benefits\u2026 to find that number, look at that trusty Form 1099-G again\u2026 the amount of taxes that were withheld from your unemployment benefits is in box 4. You report that amount on line 25b of your tax return.\nIf you have an income of $72,000 or less, you can file for free using the IRS Free File program.\nIf you\u2019re a veteran, check out MilTax for free filing options.\nFind out more about VITA here. VITA is an organization that offers free tax coaching to folks in low-mid income brackets, as well as persons with disabilities, the elderly and individuals with limited English proficiency who need assistance in preparing their taxes.\xa0\n \n Learn more about your ad-choices at https://www.iheartpodcastnetwork.comSee omnystudio.com/listener for privacy information.