Taxing Unemployment Benefits, Too

Unemployment compensation your received during the year will be reported the your state on a form 1099-G and is, unfortunately, taxable. The short form 1040A & shortest form 1040EZ both have a line to report unemployment compensation. So I you otherwise qualify for the shorter form, the unemployment compensation alone will not force you to find the long form 1040.

Unemployment compensation paid from a private fund may not be taxable if you made voluntary payments into the fund.

You can elect to have taxes withheld from the payments. If you did, good for you! Now, remember to claim the withholding for income tax along with any other state & federal income taxes withheld