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The State of NJ site may contain optional links, information, services and/or content from other websites operated by third parties that are provided as a convenience, such as Google™ Translate. Google™ Translate is an online service for which the user pays nothing to obtain a purported language translation. Jun 17, 2020 · Michigan halts 340K unemployment payments over fraud issues; ... If you’ve received a stop payment indicator, you’ll need to verify your identity within the unemployment system itself. Plus, H&R Block Free Online allows you to include unemployment income. You can’t do that with TurboTax Free Edition. QUESTION 1: Is unemployment taxable? Federal and state tax considerations. First, let’s clarify what type of tax we’re talking about. Unemployment is taxed for all recipients at the federal level. Bureau of Unemployment Compensation. Center for Workforce Research and Information The Department of Labor is an equal opportunity provider. Auxiliary aids and services are available to individuals with disabilities upon request.