Any unemployment compensation you receive is subject to Federal,NYS and Local income taxes if you are required to file a tax return.However, as you know, under current legislation, the first $2400 of unemployment benefit payments paid in 2009 are exempt from your federal and State taxes.
For example, last year, you collected $15,000 for your UIcompensation and your Federal marginal tax rate is 25%, then $15,000-$2,400=$12,600*0.25=$3,150 is tax.So your net UI compensation amount is $15,000-$3,150=11,850 after paing your Federal tax on the compensation.You also should pay State or local level taxes on it.
Last edited by Wnhough : 11-06-2010 at 09:36 PM.
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