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Taxes on Benefits

All benefits are considered gross income for federal income tax purposes. This includes benefits paid under the federal Emergency Unemployment Compensation (EUC), state Extended Benefits (EB), Trade Adjustment Assistance (TAA) and Disaster Unemployment Assistance (DUA) programs. The department reports these benefits to the Internal Revenue Service (IRS) for the calendar year in which the benefits were paid.

UC benefits are not taxable by the Commonwealth of Pennsylvania and local governments.

You may choose to have federal income tax withheld from your UC benefit payments at the rate of 10 percent of your weekly benefit rate plus the allowance for dependents (if any). Please note: The 10 percent deduction is based on your gross weekly benefit rate (i.e., the amount of benefits payable before deductions for earnings, benefit reduction, child support and so forth).

Click here to change your federal withholding status and access your UC-1099G, or call PAT at 888-255-4728.