Are unemployment benefits taxable in Missouri?

Yes, unemployment benefits in Missouri are taxable. They are considered as income by the federal government and the state of Missouri. Therefore, recipients of unemployment benefits are required to report these payments as taxable income on their federal and state income tax returns. Similar to other forms of income, taxes may be withheld from the unemployment benefits by the Missouri Division of Employment Security, upon request. It is advisable for individuals to consult with a tax professional or utilize a tax software to accurately understand their tax obligations regarding unemployment benefits. Failure to report these benefits as taxable income may result in penalties and complications with the IRS or the Missouri Department of Revenue.