OCR Text |
Show All unemployment compensation now taxable, according to IRS Due to a change in federal tax law, all unemployment compensation com-pensation received after 1986 is fully taxable as income. The Tax Reform Act of 1986 repealed the former provision which allowed a limited exclusion from gross income for unemployment unem-ployment compensation received by individuals whose income did not exceed certain amounts. Individuals who receive a substantial sub-stantial amount of unemployment compensation in 1987 may need to adjust their withholding allowances or make estimated tax payments. If they do not do this soon, they may not have enough income tax withheld to cover their tax for the year. |