Some people receiving an unemployment check could be in for an unpleasant discovery April 15.

They may owe taxes on the money.

While anyone who receives unemployment benefits can choose whether to have state and federal taxes withdrawn from their weekly checks, which most people do, some don’t, possibly hoping for the largest check possible, said Craig Spivey, a spokesman for the Oregon Employment Department.

“In all likelihood, they would owe taxes on that,” Spivey said. “That’s why, obviously, we recommend that it’s withheld.”

Spivey said people are asked to make a decision about taxes when filing for unemployment benefits online or through the Employment Department’s hot line, the two ways people can apply. For both methods, the department recommends people have taxes withheld to avoid having to make a large payment during tax season, he said.

With many Oregonians spending record lengths of time on unemployment insurance — the only source of income for some people — a substantial tax payment has the potential of becoming a burden on the unemployed.

“It’s obviously not a fun thing when you’ve already been stretched,” Spivey said.

Last week, there were 210,670 Oregonians receiving unemployment benefits, according to the state.

For people who might itemize their deductions or might claim multiple tax credits, there’s the potential that they could still be due a refund, even without having the taxes withheld, Spivey said.

Richard Panick, a spokesman for the Internal Revenue Service, said people who do have taxes from an unemployment check withheld should put the amount withheld on line 61 of the 1040 along with withholdings listed on any W2 forms. For people receiving unemployment insurance, withholding amounts are listed on 1099 forms beneficiaries receive from the Employment Department.

Withholdings are listed on Oregon tax form 40, line 42.

All people receiving unemployment benefits during 2009 received a boost from both Oregon and the federal government. Neither federal nor Oregon taxes are due on the first $2,400 of benefits anyone receives.

If people received more than $2,400, that money is taxed at the same rate as any other income.

While it’s too late for 2009 tax purposes, a person can change his or her withholding, but changes must be made in writing. Form 1040WH must be filled out and mailed to the Oregon Employment Department, P.O. Box 14135, Salem, OR 97309-5068, or faxed to 866-345-1878, according to the Employment Department.

Find out more

For information on unemployment benefits, visit www.oregon.gov/EMPLOY/UI/ui_benefit_faq.shtml.