CHARLOTTE, N.C. — It's tax time, and while taxes aren't due until April 18, many people have already started filing their returns.
There are always questions about new tax laws and how they affect returns or how to file, and 2022 is no exception. In 2021, North Carolina's unemployment rate bounced back from the record numbers we saw in 2020, but many people still received unemployment benefits.
WCNC Charlotte's VERIFY team will be answering your questions about filing income taxes through Tax Day.
THE QUESTION
Are unemployment benefits taxable?
OUR SOURCES
THE ANSWER
Yes, unemployment benefits are taxable
WHAT WE FOUND
According to the North Carolina Department of Commerce, everyone who claims unemployment is notified that unemployment benefits are taxable income and must be reported on federal and state tax returns.
Henry says even if you weren't on unemployment for the whole year and just a few weeks or months, those unemployment checks are still taxable.
"What ends up happening sometimes is someone had a great income, and then they go on unemployment and then when they file they need to add in and tell their tax preparer about the other income they receive," Henry said.
If you receive unemployment benefits, the IRS says it will issue a form known as a 1099-G through your online account with the unemployment office or by mail. According to the Department of Commerce, the statement will have the total amount of benefits paid in the previous calendar year for tax purposes.
If you have any tax questions, send them to us at verify@wcnc.com
Contact Meghan Bragg at mbragg@wcnc.com and follow her on Facebook, Twitter and Instagram.
VERIFY is dedicated to helping the public distinguish between true and false information. The VERIFY team, with help from questions submitted by the audience, tracks the spread of stories or claims that need clarification or correction. Have something you want VERIFIED? Text us at 704-329-3600 or visit /verify.