Muscatine

---------------------------------------

In Iowa, federal taxes (only) are due and collected on unemployment benefits everyone has received. You can have them witheld weekly when you sign up or pay after the end of the year and take the big hit when you file for the year. So, anyone in Iowa you may know on unemployment, pays taxes.

(Source: My daughter IS an unemployment expert for the state.)

You also pay Iowa income taxes on unemployment:

Nonwage Withholding Requirements

"Nonwage income" includes pensions, annuities, supplemental unemployment benefits, sick pay benefits and other nonwage income payments to Iowa residents. Iowa income tax is generally required to be withheld in cases where federal income tax is withheld. In situations where no federal income tax is withheld, the receiver of the payment may choose to have Iowa withholding taken out.

http://www.iowa.gov/tax/educate/78552.html

Sorry, jillary...nice try. Thanks for proving davie wrong again....but, like davie,  you obviously don't read what you post. See that word "supplemental" in your offering?

Supplemental is not basic unemployment. Likewise, from the IWD webiste brochure:

Questions and answers about Iowa Unemployment Insurance Taxes:

Q- Aren’t total wages for Iowa unemployment insur­ance purposes the same as wages subject to income tax withholding?

A- NO, there are several differences. Some payments specifically exempted for Iowa unemployment insur­ance purposes are subject to income tax withholding and some payments included for Iowa unemployment insurance purposes are exempted from income tax withholding.

Right now...alot of payments are exempt from it because of politics. Guess why that might be? However...none are exempt from fed taxes! Why hasn't nobama the kenyan fixed that, jillary?

http://www.irs.gov/taxtopics/tc418.html