If you received unemployment benefits during the year, you should expect them to show up as income on your federal tax return. Depending on your total income and tax situation, this may increase what you owe or reduce your refund.
The agency that issued your unemployment benefits should send you a Form 1099-G showing the total amount you received and any taxes already withheld. You'll use this when you file.
Withholding during the year: You can choose to have federal income tax withheld from your unemployment payments to avoid a large tax bill at filing time. If you didn't elect withholding, you may owe taxes when you file.
Where to get help
Because everyone's tax situation is different, the best step is to speak with a qualified tax professional who can review your specific circumstances. You can also find official guidance on how unemployment income is taxed at irs.gov.
*Chime does not provide tax advice. Please consult your accountant for tailored tax guidance.