Unemployment benefits are taxable income and are subject to both Federal Income Tax and State Income Tax where applicable. Each January, TWC mails IRS Form 1099-G to all claimants who were paid benefits in the previous tax year. You can also get your 1099-G information online or by phone.
Extended Benefits (EB) pays additional temporary unemployment benefits to claimants during periods of high unemployment. The claimant must exhaust all regular benefits before receiving EB.
Learn about a Texas Workforce Commission Tax Audit The purpose of the Tax Audit along with records required and how to submit them.