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Maryland Unemployment Benefits Information

We are an online resource to help answer your questions, check eligibility and assist in applying for Unemployment. You will also be advised if you qualify for additional benefit programs and receive our benefit guide.

Maryland Federal Unemployment Benefits and Federal Income Taxes

 

Federal unemployment benefits are taxable on both the state and federal levels, and UI beneficiaries must report them as gross income. The DLLR assists UI claimants in filing their taxes by mailing them the 1099-G IRS form, which displays the full amount of UI payments that the beneficiary has received during the benefit year. 

The former employees can then choose whether or not to have these taxes deducted from their weekly UI benefits. The department offers four different tax deduction options. Beneficiaries can choose to have Maryland state taxes, federal taxes, no taxes or both types of taxes withheld from their weekly UI paychecks. 

Note: Those claiming benefits for unemployment who chose to have their taxes withheld from their UI payments will have to return the full amount of payments, along with the deducted taxes, in the event of an overpayment.