Are my benefits taxable? July 22, 2021 20:33 Updated Unemployment benefits are subject to federal and state income taxes. If you had taxes withheld from your claim and did not receive a Form 1099-G, click here to login to UInteract, where you will have the option to print a new 1099-G. Related articles How are benefits paid? Is vacation, holiday, or WARN pay reportable? What is included in my Form 1099-G from DES? What if I am discharged? What is reasonable assurance?