Are Unemployment Benefits Still Taxed?
With more people out of work, Congress exempted the first $2,400 in unemployment benefits from taxes in 2009. The law also provides a 65 percent subsidy for health insurance premiums maintained by laid-off workers under Cobra for up to 9 months. Estimated cost is $4.740 billion over 10 years for unemployment provision and $24.7 billion for Cobra.