The full explanation
You generally file in the state where you worked. While you get payments, you must report what you earn and any job offers. According to the IRS, these payments count as income: you receive Form 1099-G and can ask to have tax withheld.
An example
Jorge is laid off because the factory closed. He files for unemployment insurance in the state where he worked, reports what he earns from odd jobs each week and asks to have tax withheld from each payment.
You will see it in…
- Your state unemployment agency's website
- The Form 1099-G you receive for your tax return
- Letters from your state about your claim
