<ul data-eligibleForWebStory="false"><li>Unemployment benefits and severance pay are taxable income as per the federal government.</li><li>It's advisable to request withholding from future unemployment payments to avoid a tax bill during filing.</li><li>Severance pay, even if received as a lump sum, is taxed like regular income and can push individuals into a higher tax bracket temporarily.</li><li>Lower income due to job loss may qualify individuals for tax refunds and various tax credits, providing a silver lining in times of financial uncertainty.</li></ul>

Tax Tips for Navigating Unemployment and Layoffs in 2025

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