Unemployment benefits are taxable. You can still file late tax return & report unemployment
If you’re wondering if you need to file a prior year tax return for a year you were unemployed in, the answer is yes.
Being unemployed doesn’t mean you have a free pass to avoid filing a tax return. Sooner or later, you’ll need to file your late tax return and pay tax on any income received, even if it’s unemployment benefits.
Chances are, you’ll not only need to report unemployment on a federal return, but a state return as well.
Get Caught up and File a Late Tax Return
Any income you received during the tax year counts as income that needs to be reported on a tax return. The IRS considers unemployment benefits as income that must be reported on a tax return.