(1) The department shall advise an individual filing a new claim for benefits at the time of filing the claim that: (a) unemployment benefits may be subject to federal, state, and local income tax; (b) there are requirements for estimating tax payments; (c) the individual may elect to have federal income tax deducted and withheld from the individual's payment of benefits at the amount specified by the Internal Revenue Code; (d) the individual may elect to have state income tax deducted and withheld from the individual's payment of benefits at the rate of 5%; and (e) the individual may change a previously elected withholding status.
(a) unemployment benefits may be subject to federal, state, and local income tax;
(b) there are requirements for estimating tax payments;
(c) the individual may elect to have federal income tax deducted and withheld from the individual's payment of benefits at the amount specified by the Internal Revenue Code;
(d) the individual may elect to have state income tax deducted and withheld from the individual's payment of benefits at the rate of 5%; and
(e) the individual may change a previously elected withholding status.
(2) Amounts deducted and withheld from benefits for income taxes under Subsection (1) shall remain in the unemployment trust fund until transferred to the federal or state taxing authority as a payment of income tax.
(3) (a) The department shall follow all procedures specified by the United States Department of Labor, the Internal Revenue Service, and the State Tax Commission pertaining to deducting, withholding, and submitting amounts deducted and withheld for income taxes. (b) Amounts deducted and withheld for income taxes under this section shall be deducted and withheld only after amounts are deducted and withheld for: (i) overpayment of unemployment compensation; (ii) child support obligations; or (iii) any other amount required to be deducted and withheld under this chapter.
(a) The department shall follow all procedures specified by the United States Department of Labor, the Internal Revenue Service, and the State Tax Commission pertaining to deducting, withholding, and submitting amounts deducted and withheld for income taxes.
(b) Amounts deducted and withheld for income taxes under this section shall be deducted and withheld only after amounts are deducted and withheld for: (i) overpayment of unemployment compensation; (ii) child support obligations; or (iii) any other amount required to be deducted and withheld under this chapter.
(i) overpayment of unemployment compensation;
(ii) child support obligations; or
(iii) any other amount required to be deducted and withheld under this chapter.
Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal plans you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.
LegalFix provides its members with easy access to affordable legal services through a network of independent law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.
The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our network law firms.
You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your network law firm.
The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.
Use of this website, the purchase of legal plans, and access to the LegalFix networks of law firms are subject to the LegalFix Terms of Service and Privacy Policy.