Tax Information - Disability During Unemployment
Disability During Unemployment benefits are subject to federal income tax. Upon the claimant's written request, a federal income tax deduction at the rate of 10% will be made.
All benefits received under the Disability During Unemployment program are considered taxable for federal income tax purposes. At the beginning of the year the claimant will be sent a Form 1099-G which will include the disability benefits as well as any unemployment benefits they received during the previous calendar year.
Benefits under the New Jersey Temporary Disability Insurance Program are not taxable for New Jersey State Income Tax purposes.
