Unemployment compensation and taxes?

When she files, she will add the wages plus the unemployment to get her AGI.

When she gets to the section on EIC, they will have her look up her income twice in the EIC chart. One for the actual earnings and once for the AGI. Whichever EIC amount is smaller is the one she gets.

Unemployment compensations is taxable, just like income. You have to claim it. If you income which includes unemploye,ment compensation exceeds the EIC cut off, you will loose the EIC. You must have earned income to get that credit and not too much.

She will get a tax form from the state, I dont think it is a w2.

she'll have to pay income tax on the employment compensation, i'm not sure about the eic, but i'm sure she

will get the forms in the mail .

this is element of your AGI and does not have a distinctive cost, your cost relies upon on your total AGI such because of fact the unemployment. some states enable you to chosen to deduct greater desirable than 10%. If yours does not, the two make envisioned funds or improve your man or woman withholding, to maintain from owing once you record.

Its income, like any other. She'll get a W2 like from any other employer.