Since the pandemic began, close to 775,000 South Carolina workers have filed initial unemployment claims and more than $4.5 billion has been paid in unemployment and pandemic-related benefits, according to statistics available from SC Department of Employment and Workforce.
The South Carolina Department of Revenue reminds individuals receiving unemployment that these benefits are taxable.
South Carolina and federal taxes apply to unemployment benefits – including unemployment benefits from programs related to the pandemic. If you are receiving unemployment benefits, you may pay taxes related to these benefits in the ways list below.
Whatever method you choose, don’t be surprised by next year’s tax bill. Plan today!
- Withholding: Have state income taxes withheld from your unemployment benefits. Withholding is voluntary. If you want taxes withheld from your unemployment benefits, you can take care of it at this SC DEW site
- Make estimated tax payments: You can choose to make quarterly South Carolina estimated tax payments
- Wait until you file your 2020 Income Tax return: You may choose to wait to calculate and pay your taxes next year when you file your 2020 Income Tax return. However, this option gives you less time to prepare for your tax payment and may expose you to an underpayment penalty.
- Review Information Letter 20-15 for more information on state Income Tax and withholding on unemployment benefits
- For questions about federal unemployment benefits and tax obligations, visit gov
Source: SCDOR News