Why are Federal benefits (PUA, PEUC, FPUC, LWA) included in my Form 1099-G? July 22, 2021 20:00 Updated All unemployment benefits, including federal pandemic unemployment program payments are taxable. Related articles When will I receive benefits? Important Information Will the employer be notified when a claim is filed? Why is there a protest period for unemployment claims? What if I try a new job, but it just doesn't work out?