The short answer to this question is: yes. Unemployment benefits are reported to the recipient on a Form 1099-G, and the benefits are taxable. There was a year or two, several years ago, where the federal government allowed people to exclude a certain amount of unemployment benefits from taxation, but that provision expired. In Iowa, unemployment [...]
What to do when your college-aged child files a tax return and claims tuition credits you were entitled to on your own return.
This is an excerpt from a presentation I give to entrepreneurs who are trying to get businesses off the ground. ----- One of the biggest areas of discussion when I give this presentation is over the subject of employees vs. independent contractors. Let’s define some terms first: this discussion is about people you pay for work [...]
The short answer is, there's really no special documentation you need, because it's technically not a charitable deduction.