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unemployment benefits for IRS filing

By Terry Savage on March 25, 2021 | Economy & Taxes

i live in illinois and am filing my taxes on Monday. do i need to file both Federal and State earnings of all unemployment benefits? i heard that there was a write off of $10,200 dollars. is the true or do i pay taxes on all the money i was given by Unemployment. i am 67 and work part-time when there is work. my husband has been retired for 15 years and we have no other family members. Thank you for your time.

Terry Says

If you haven’t filed your taxes yet, I strongly urge you to file online with the help of online software from TurboTax or TaxCuts, or electronically through HR Block. They have the latest updated software –updated just this week — that will automatically compute the taxes on unemployment benefits. The first $10,200 of unemployment benefits is NOT taxable — IF your AGI is under $150,000 (and that $150,000 does not include unemployment benefits you received)!!!
Same rules for Illinois, but only the software will compute this properly for you.

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