Dear Tax Guru,

How does unemployment income be posted on a C-Corp's officer's personal 1040? Is it recorded as regular income? Does he get a year-end statement from the State? Also, what taxes needed to be paid from unemployment collected. (Note, he is NOT getting a salary while collecting unemployment)

Thank you,
Sufen Wang

You should receive a 1099-G from the State showing the total amount of income to report.

The income is taxable like any other ordinary income except that for unemployment income received in 2009 the first $2,400 is now not taxable.

Dear Shawn,

Thank you for your advice in this matter.

Sufen