If you received unemployment compensation during the year, you should receive Form 1099-G, showing the amount you were paid. Any unemployment compensation received must be included in your income.
Unemployment compensation generally includes any amounts received under the unemployment compensation laws of the United States or of a state. It includes state unemployment insurance benefits and benefits paid to you by a state or the District of Columbia from the Federal Unemployment Trust Fund. It also includes railroad unemployment compensation benefits, but not worker's compensation.
If you received supplemental unemployment benefits from a company-financed fund or a private fund to which you’ve contributed, the income you receive is technically not considered unemployment compensation.
If it’s from a company-financed fund, you’ll include the benefits as wages and will receive a Form W-2 from the company. And if you received the benefits from a private fund to which you’ve contributed voluntarily, you only have to pay taxes on the amount you receive that exceeds what you’ve contributed. You should report these benefits as “other income” on your tax return.
Keep in mind that if you receive unemployment benefits from your state, you may be required to make quarterly estimated tax payments unless you elected to have taxes withheld.
If you repaid any unemployment benefits in the same year you received them your total benefits should be reduced by the amount you repaid.