File for Unemployment: FAQs 1099G and Tax information

Unemployment $10,200 Tax Exemption

Unemployment $10,200 Tax Exemption: If you have an annual income of less than $150,000, regardless of filing status, recently enacted legislation exempts up to $10,200 in unemployment benefits from both federal and state income tax for tax year 2020.

If you received unemployment benefits in 2020, Maine Revenue Services has put out information and instructions on how you may be eligible to claim this exemption from both Maine and federal income tax: https://www.maine.gov/revenue/tax .

Information from the IRS: IRS sending more than 2.8 million refunds to those who already paid taxes on 2020 unemployment compensation: https://www.irs.gov/newsroom/irs-sending-more-than-2-point-8-million-refunds-to-those-who-already-paid-taxes-on-2020-unemployment-compensation .

If you are using a smartphone to view the website, you may need to zoom out to see the complete set of instructions.

 

NOTE: Unemployment 1099G's will be available by the end of January 2021.

Unemployment insurance payments are taxable. When you file for unemployment, you have the option to choose to have taxes taken out at the time benefits are paid. If you opt to have the deductions taken out of your unemployment benefits, the standard deduction used is 10% for Federal Taxes and 5% for State Taxes.

For more information, please download the 1099G FAQ. (PDF)