Unemployment benefits are taxed, but you get to choose how - Business Insider

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You have two choices for paying taxes on unemployment benefits

on top of their regular benefits. Normally you'd receive roughly half of your prior wages capped at your state's limit for up to 26 weeks. During the pandemic, you can apply for an additional 13 weeks of pay.

You do, however, have a choice of how you'd like to pay the tax you owe — either through withholding or estimated quarterly payments.

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