Question

Susie received unemployment benefits in the current year.

a. All of the unemployment benefits are taxable.
b. All of the unemployment benefits are nontaxable.
c. The taxability of the unemployment benefits depends upon other income received for the year.
d. Half of the unemployment benefits are taxable and half are nontaxable.

Answer 1

c. The taxability of the unemployment benefits depends upon other income received for the year.

Step-by-step explanation:

Unemployment benefit is received from the government when a person losses the job. It is paid to compensate basic need of an unemployed person.

It may or may not be taxed, if you don't have any other income in the year then it will not be taxed and if you do have other incomes then total income is calculated and evaluated for the tax purpose.

Answer 2

All of the unemployment benefits are taxable.

Step-by-step explanation:

Unemployment benefits can be defined as the amount of money given to unemployed individuals. These payments are made by different authorized bodies.

Unemployment benefits helps to stimulate the economy as a whole during a period of economic decline. The various authorized bodies that give out these unemployment benefit have to control the flow so that these unemployed individuals will not be discouraged from searching for a new job.

Unemployement benefits are subject to taxation, it is left for the individual to decide if 10% of the benefit will be withheld or to make a quarterly payment of the tax.