Unemployment benefits are taxed in Illinois, and it is another state with a flat tax rate. That’s good news if you’re a high-earner, but the flat tax rate means people with lower incomes may pay more than they would in other states. That’s because Idaho moved to a flat income tax rate of 5.8% for all taxable income over $2,500 ($5,000 for joint filers) in 2023. Idaho is another state that taxes unemployment benefits, and you’ll pay the same tax rate, regardless of your income. If your taxable income exceeds $200,000 ($400,000 for joint filers), you’re subject to an 11% tax rate.Income tax rates in Hawaii range from 7.6% to 10% for single filers with income between $24,001 and $200,000.The lowest bracket comes with a 1.4% tax rate, but most Hawaii residents will pay more. There are 12 income tax brackets in Hawaii. The state taxes unemployment benefits to the same extent as the federal government. Georgia may reduce the tax rate to 4.99% by 2029, but that will only happen if specified targets are met.Georgia will move to a 5.49% flat tax rate in 2024.That’s because this rate applies to filers with more than $7,000 of income ($10,000 for joint filers). Unemployment benefits are taxable in Georgia, and most filers will pay a 5.75% state income tax rate. Delaware taxes income greater than $60,000 at a 6.6% rate.If your taxable income is between $5,001 and $60,000, you could pay a tax rate up to 5.55%.You’re subject to a Delaware income tax rate of at least 2% if your taxable income is above $2,000. Delaware unemployment taxĭelaware will tax your unemployment benefits, but how much will you pay? That depends on your yearly income. You’ll pay a flat 4.4% Colorado state income tax rate in 2023, regardless of your income level. Taxpayers with net incomes over $84,500 may reach higher tax rates sooner than the brackets noted above.Ĭolorado will tax your unemployment as regular income, but there’s no need to worry about which tax bracket you fall into.If your taxable income is more than $24,300, you’ll pay a 4.7% tax rate.The tax rate is 2% for taxable income between $5,100 to $10,299.That means how much tax you pay depends on which tax bracket you fall into. The reduced tax rate went into effect one year earlier than planned.Īrkansas considers your unemployment benefits taxable income, but the state doesn’t have a flat income tax rate like Arizona does.The previous income tax rate in Arizona was 2.98%.However, there’s a good chance you’ll pay less income tax in Arizona this year since the state now imposes a flat 2.5% tax rate, regardless of how much you earn (or collect in unemployment).

Arizona taxes on unemploymentĪrizona taxes unemployment benefits at the same rate regular income is taxed. Here’s how the states that do tax unemployment will tax your benefits in 2023. 'Major data breaches we've seen over the last couple of years could be related to the massive amounts of identities being used to file fraudulent unemployment claims nationwide.We really need your help getting the word out on what people should do if they did not file for unemployment benefits and get a 1099 from us,' the spokesperson said.If you collect unemployment in any other state, you may find yourself with a bigger-than-expected tax bill when you file your state return. 'I'm hoping the you can help me to determine what steps I need to take to protect myself.'Ī Ohio Department of Job and Family Services spokesperson said that Manford is a victim of identity theft. 'What I hadn't heard was people talking about another state and that really concerned me,' Holmes said.

The ABC7 I-Team has heard from several people in Illinois who received a 1099-G form, but never applied for unemployment benefits. 'I felt like I had been violated,' he said.

Manford believes someone filed for unemployment using his name and personal information. It's a form sent to people who've received unemployment benefits because the IRS requires benefits be reported as income. Holmes said he received the form in the mail from the state of Ohio. He wants to know how this happened and what it will take to clear his name. Manford Holmes sad he received a 1099-G form, which is sent to people who have filed for unemployment. That's because he's never lived in Ohio and he hasn't filed for unemployment. CHICAGO (WLS) - A man in Chicago was surprised to receive an unemployment tax form from the state of Ohio.

Ohio unemployment tax forms