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Also we need to consider state taxes. Currently 34 states require taxes to be paid on unemployment benefits.
15 states do not tax unemployment income:
Alabama, Alaska, California, Florida, Montana, Nevada, New Hampshire, New Jersey, Pennsylvania, South Dakota, Tennessee, Texas, Virginia, Washington, Wyoming
3 states do partially or by a different set of standards:
Indiana -Although unemployment benefits are taxable in Indiana, part of your benefits may be deductible. The deductible amount depends on your federal adjusted gross income, how much unemployment compensation you receive, and your filing status. Complete the "Unemployment Compensation Worksheet" in the Form IT-40 instruction booklet to calculate the exact amount of your deduction.
Oregon - generally taxes unemployment benefits received during the year. However, the state does not tax unemployment benefits received as a result of work performed in any federally recognized Indian reservation in Oregon or other land in the state that has been set aside as the home of tribal Indians under federal protection.
Wisconsin - generally taxes unemployment benefits. However, a portion of your benefits may be exempt from tax. Complete the "Unemployment Compensation Worksheet" in the Form 1 instructions to see if you can exclude any portion of your unemployment benefits from Wisconsin income taxes.