Benefits Will Be Taxable

The Tax Reform Act of 1986 provides that all unemployment benefits are taxable. The Internal Revenue Service and the State Department of Revenue will furnish complete information on how to report and compute the tax. Taxes can be withheld from your unemployment insurance benefits.

You will be furnished a statement, Form 1099-G, at the end of the year showing the amount of benefits you have received and any federal and state taxes withheld. The Internal Revenue Service and the State Department of Revenue will be furnished the same information.

It is the responsibility of each individual to inform the South Carolina Employment Security Commission any time a change of address occurs so the Form 1099-G will be sent to the correct address.

If you have any questions regarding taxation of benefits, you must contact either the Internal Revenue Service or the State Department of Revenue. Your unemployment claims office cannot answer any questions on this matter.