Unemployment Personal income types
2020 tax return only: A portion of your unemployment payment does not count toward your adjust gross income (AGI). Visit Unemployment and 2020 tax returns for more information.
How to report
If you received unemployment, you should receive Form 1099-G, showing the amount you were paid.
Unemployment compensation is taxable for federal purposes. Visit IRS’s Unemployment Compensation for more information.
Unemployment compensation is nontaxable for state purposes.
Make a subtraction adjustment on the unemployment compensation line, in column B, of California Adjustments – Residents (Schedule CA 540).
Visit Instructions for Schedule CA (540) for more information.