You’re responsible for paying federal and state income taxes on the unemployment benefits you receive. The Department of Unemployment Assistance (DUA) does not automatically withhold taxes, but you may request that taxes be withheld from your weekly benefits when you file your claim.
Your weekly benefits may also be reduced if you have a child support order or if you receive an overpayment on your weekly benefit.
What to know
Your unemployment benefits are taxable. If you want taxes withheld from your weekly benefit payments, you must tell us this when you file your claim. To do this, you may:
- Fill out the tax withholding section of UI Online
- Call the TeleCert line at (617) 626-6338
If you don’t want to have taxes withheld from your weekly benefits, you will be responsible for paying federal and state taxes directly later.
Current tax withholding rates
|Federal income taxes:||10%|
|Massachusetts state income taxes:||5.1%|
We’ll send you the tax form you need by Jan. 31 of the year after you receive benefits. This tax form is called Form 1099-G.
Additional Resources for Tax forms
Child support payments
If you have a child support order from any state, you must tell us when you file for unemployment benefits. Your benefits will be reduced by the amount of the child support order.
Overpayment of benefits
If you are paid more than you were eligible for (an overpayment) by Massachusetts or any other state, your future weekly benefits may be reduced to make up for the overpayment.