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Federal and State Income Tax Withholding
Unemployment Insurance and the IRS
Unemployment insurance is considered income for federal and state tax purposes. Each year all of your benefit payments are reported to the Internal Revenue Service and the Wisconsin Department of Revenue.
You can ask to have state and federal taxes withheld from your unemployment benefit payments or make estimated tax payments.
How to Request Tax Withholding
You can request that taxes be withheld either online OR by phone.
- The Federal withholding is 10% of the weekly amount payable
- The State withholding is 5% of the weekly amount payable
Request Withholding/Change Withholding Online or Phone
ONLINE: You can request to have taxes withheld or to change your current withholding status by using the online Tax Withholding Application.
PHONE: You can request to have taxes withheld or to change your current withholding status by calling one of the initial claim application phone numbers (select Menu Option 2).
We mail Form 1099-G to your last-known address by January 31st each year.
If you elect to have state and/or federal taxes withheld, your Form 1099-G will include the withholdings from your UI benefit payments for that tax year.
Questions about UI payments and your Taxes?
If you have any questions about how your UI payments will affect your taxes:
- Contact the IRS,
- or contact the local office of the Wisconsin Department of Revenue
If your address changes: