For tax year 2009, the first $2,400 in unemployment benefits was not taxable by the Federal Government. Does this rule apply for the 2010 tax year too?
No. The American Recovery and Reinvestment Act (ARRA) states that the first $2,400 of unemployment benefits an individual receives in 2009 will not be taxed by the federal Government. This provision only applies to unemployment benefits received in 2009. It does not apply to unemployment benefits received in 2010. Additional information is available at: http://www.irs.gov to assist you in completing your federal tax return. If you are filing your 2009 taxes, please note that the 2009 Form 1099G will report the total unemployment benefits you were paid in 2009, including the first $2,400.
