The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Unemployment compensation||Date: 12/19/1998 1:00 PM|
|Author: TMFTaxes||Number: 7357 of 124817|
[[ First Roy, thanks for the pervious answers to a couple of questions you
answered for me recently.]]
You are certainly very welcome, Rusty. That's what we do here.
[[ I have another question involving unemployment compensation.]]
[[ My wife was
layed off early this year and collected about $5500 in umemployment comp. I
assume this is taxable income (federal and state - MN) even though they did not
withhold any taxes from the payments. Is this correct?]]
First of all, sorry to hear about your wife and her current bout with "dowsizing" or "rightsizing" or "resizing", or whatever the current "tony" term for this might be.
As far as your question, you are right on from a federal standpoint. The UI income will be included in your income from a federal standpoint. With respect to your state taxes, I can't tell you. Most states make an adjustment for any UI received, and don't tax it on a state level. But you'll really have to take this question up with the MN state tax people to find out how it is taxed (or not taxed) in YOUR state.
Sure...hope this helps a little bit...
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