- Eligibility for unemployment insurance depends upon how much you worked or earned during your "base year" which is computed using four of the last five quarters prior to when your claim was filed.
You also must be unemployed "through no fault of your own," such as a layoff, business closure or being ill-suited for the job. If you quit or are fired "for cause," such as violating company rules or policies, then you may be ineligible. - Your weekly unemployment insurance benefit equals between 50 and 70 percent of your weekly earnings, up to the state maximum, during your "base year." Benefits usually last for 26 weeks but that time period can be extended by working part time while searching for full-time work.
- Since 1978, unemployment insurance benefits have been taxable and must be reported as income on your federal tax return. In 1994, the General Agreement on Tariffs and Trade required states to offer claimants the option of federal income tax withholding. You will receive an Internal Revenue Service Form 1099G by Jan. 31 showing your total benefits received and tax withheld.
- "Unemployment" usually includes not just state or federal unemployment insurance but also benefits paid through the Federal Unemployment Trust Fund. It also includes disability benefits paid in lieu of unemployment, railroad unemployment benefits and benefits paid through the Trade Act of 1974 or Disaster Relief and Emergency Assistance Act of 1974. However, it does not include workers' compensation.
- If you were overpaid unemployment insurance and had to repay it, you can subtract that amount from your total income. If you were overpaid in the previous year and still are repaying it, that amount also can be deducted.
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