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Maryland Unemployment Benefit Questions

Can I be paid for my dependents?

A dependent is defined as a son, daughter, stepson, stepdaughter, or legally adopted child (not grandchild or foster child) under 16 years of age for which you provide support.

You may be eligible for dependents’ allowance of $8 per dependent for up to 5 dependent children. Dependents’ allowance will only be paid for 26 weeks during any one-year period. Only one parent may claim a dependent during any one-year period. The maximum weekly benefit amount, including any dependents’ allowance is at present $430 per week. Calculate your benefit amount.

What if I am working full time but earning less than my weekly benefit amount (WBA)?

If you are working full-time but earning wages that are less than your weekly benefit amount (WBA), you are not unemployed as defined by the Maryland Unemployment Insurance law. As a result, you are not allowed for either total or partial unemployment insurance benefits. Therefore, it is your job to tell DUI staff that you are a full-time worker. Failure to disclose this fact may be viewed as an effort to falsely receive unemployment benefits.

Are unemployment insurance payments taxable?

Yes. Any unemployment insurance benefits that you collect must be reported as part of your gross income for both state and federal tax purposes.

To help you in filing your tax returns, there is an IRS Form 1099-G showing the total amount of unemployment insurance benefits paid to you during the previous year. You may choose to have taxes deducted from unemployment insurance payments. You can decide to have either Federal taxes, Maryland state taxes, both or neither deducted from your payment. You must sign and return the W-4 form before any taxes can be withdrawn from your unemployment insurance benefits.

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