FREQUENTLY ASKED QUESTIONS
Yes, unemployment compensation is considered taxable income and must be reported on your tax return. You should receive Form 1099-G showing the total amount of unemployment benefits received.
The IRS recommends keeping tax returns and supporting documents for at least 3 years from the date you filed the return or 2 years from the date you paid the tax, whichever is later. However, if you underreported income by more than 25%, keep records for 6 years. For property-related records, keep them until the period of limitations expires for the year in which you dispose of the property.
You can contribute to an IRA up until the tax filing deadline (typically April 15) of the following year.
No, married couples can choose to file either jointly or separately, though filing jointly usually results in lower taxes.
Up to 85% of Social Security benefits may be taxable, depending on your total income.
