Can your federal and state income taxes be lowered due to unemployment benefits?

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1005244

2026-04-04 16:05

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No, in fact most places these benefits are taxable income, but withholding isn't required, so you may end up underpaid (and owing tax and penalty) if you don't consider it. However, that UI is probably much less than your normally making, and not earning that income may mean you remain in a loweer bracket anyway...you effectively get a lower rate.

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