How will unemployment compensation affect my tax return? April 24, 2021 19:45 Updated If you do not have taxes withheld from your unemployment compensation, it could result in a tax liability. Related articles Do I have to report unemployment benefits on my federal income tax return? I want taxes withheld from my unemployment benefit for the 2021 tax year. How do I do that? How will I know how much unemployment compensation I received? What is the timeline of COVID-19 events and benefit programs paid by the Oregon Employment Department? What do I do with a 1099G tax form?