Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
Thank you for your question, and thanks for coming to JustAnswer.com. According to IRS
tax topic 418, unemployment compensation
is included in gross income
for federal tax
purposes. This means that your client will have to pay federal income
tax on these payments. CLICK HERE
In New Jersey, the unemployment compensation is not taxable. Therefore your client will not pay state tax on this amount. CLICK HERE
Please let me know if you need anything else. You can request me directly by placing "MyVirtualCPA" in the subject of your question.
Thanks again! Hope to see you soon.
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You should be aware that your question, as with most tax questions, can never really be answered completely...addressing all the permutations; that is because of the many assumptions that have to be made I have done my best to determine what I think you are asking and answering it in the most direct and understandable manner possible. If, however, after reviewing the questions, you have any uncertainties or further questions, please do not hesitate to ask.