Taxes on Benefits
All benefits are considered gross income for federal income tax purposes. This includes benefits paid under the federal Emergency Unemployment Compensation (EUC), state Extended Benefits (EB), Trade Adjustment Assistance (TAA) and Disaster Unemployment Assistance (DUA) programs. The department reports these benefits to the Internal Revenue Service (IRS) for the calendar year in which the benefits were paid.
UC benefits are not taxable by the Commonwealth of Pennsylvania and local governments.
You may choose to have federal income tax withheld from your UC benefit payments at the rate of 10 percent of your weekly benefit rate plus the allowance for dependents (if any). Please note: The 10 percent deduction is based on your gross weekly benefit rate (i.e., the amount of benefits payable before deductions for earnings, benefit reduction, child support and so forth).
The Statement for Recipients of Unemployment Compensation Benefits
This statement shows the amount of UC benefits paid and the amount of federal income tax withheld, if any. The statement will be mailed to your address of record during the prior calendar year. (The Post Office will forward Form UC-1099G if it has a forwarding address on file.)
You may also request an additional copy of your Form UC-1099G via PAT
, during the period of February through May.
If you need a Form UC-1099G for a year other than the prior two calendar years, call 888-313-7284.