Unemployment Benefits

• Job seekers receive unemployment compensation benefits based on their prior work history, covering the 15 to 18 months immediately before separating from an employer. The most recent employer has an opportunity to contest the benefits award and a contest may require a hearing. Once the state employment office approves the unemployment benefits, the recipient must perform job searches and comply with requirements of the employment office. Some states require recipients to attend meetings and seminars, register for state workforce notification of job openings and respond to job leads. The job seeker must certify job searches and qualification for benefits.
  
  

Income

• You can work, earn some income and receive unemployment benefits at the same time. You must report earned income every week or two weeks as required by your state. Your unemployment payments are offset by the income you earn. Failing to disclose earned income may cause you to receive an overpayment of unemployment benefits, which you must repay.
  
  

Working

• Once you go back to work, you must notify the employment office and discontinue completing the requests for benefits and the job search information. The employment office no longer pays you unemployment benefits. If you received an overpayment in unemployment benefits, the employment office expects you to repay the money. How you repay is your choice, Also, the employment office can't take money from the paycheck earned from your new job without following legal procedures for due process.
  
  

Taxes

• If you receive unemployment compensation benefits, the Internal Revenue Service collects a share in federal income taxes with Form W-4V deductions from your unemployment benefits check or at the time of filing your federal tax return. You should receive Form 1099-G for unemployment benefits received. If you repay an overpayment in the same year that the overpayment occurs, you can subtract the amount from the total received and enter the result on Line 19 of Form 1040, Line 13 of Form 1040A or Line 3 of Form 1040EZ. Mark the repaid amount on the dotted line leading to the total. If you make repayment in a different year, Use Schedule A, Line 23 to report the repayment to the IRS.