It’s never easy to stare unemployment in the face. If you received little to no warning, or no severance pay, it's even harder. However, if you qualify to collect unemployment, the benefits you receive can make the lean times a bit less stressful.
Filing for and collecting your unemployment benefits can be confusing—perhaps that’s why many people who qualify for unemployment benefits don’t cash in. According to the U.S. Bureau of Labor and Statistics (BLS), 55% of unemployed people in 2022 did not apply for unemployment benefits because they believed they weren't eligible.
Your first step after losing your job should be to confirm whether you qualify for unemployment. Rachel Sanborn, a certified financial planner, shares the scoop on unemployment eligibility.
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How does unemployment work?
Unemployment insurance (UI) is a joint state-federal program created in 1935 to temporarily replace a portion of laid-off workers' salary. Because it's a state-federal effort, each U.S. state has their own set of rules and criteria for eligibility, but all follow the guidelines established by federal law.
The idea behind UI is to provide assistance to individuals who are unemployed while they look for another job—and also to stimulate the economy, in case people are being let go due an economic downturn.
How much does unemployment pay?
Generally, unemployment benefits pay up to 50% of your previous wages over a recent 52-week period. States determine a maximum benefits amount one person can receive weekly. So, the exact amount you'll get paid depends on these specific factors, plus any other guidelines your state may have to make the calculation.
For example, in Massachusetts, workers receive approximately 50% of their wages earned in a “base period” (this term often refers to the year before) of three or four completed calendar quarters, up to the maximum amount of $1,033 per week.
In California, the weekly benefit amount can range from $40 to $450. California's Employment Development Department (EDD) has an online unemployment calculator that estimates your benefits, based on wages received in four recent quarters. (For instance, if you're filing an unemployment claim in January 2025, your wages received in 2024 would be your most recent.)
How long does unemployment last?
Like the amounts paid, the exact duration of unemployment benefits varies from state to state. But in most states, it lasts for the maximum of 26 weeks (approximately six months). Some states, like Iowa and Massachusetts, consider your unemployment claim effective date the start of what's called a “benefit year.”
During this period, you may get paid until you reach your maximum benefit amount or until your benefit year ends. Once it's over, no new payments will be made. Your payments also typically stop once you find a new full-time job. If you continue to claim benefits while employed, it's considered fraud.
How to qualify for unemployment
According to the U.S. Department of Labor, you need to meet three criteria to qualify for unemployment:
1. You’re unemployed through no fault of your own: That means you are out of a job due to reasons beyond your control, like a layoff. If you quit your job without good cause or are fired for gross misconduct, you’re not eligible. (“Gross misconduct” generally refers to illegal or dangerous acts committed in the workplace, like stealing from your employer.)
2. You meet your state's work and wages earned requirements: Every state has different rules. In New York, for example, you must have worked in at least two calendar quarters of your base period, being paid at least $2,600 in wages in one of those quarters. Sounds complicated, but if you had a solid, long-term job, you probably meet your state’s minimum time and wage requirements.
3. Meet any additional requirements of your state's unemployment insurance program: You also need to be actively looking for a new job. Thus, those who head back to school full-time won’t be able to collect because they’re no longer actively job-searching.
If you are seeking professional training, some states (like California) have programs that allow workers to receive unemployment benefits while attending school or training. However, there are specific types of training programs that are accepted and each one has their own list of eligibility criteria.
Note: Contract laborers don’t qualify for unemployment because their employers didn’t pay unemployment taxes for them when they were working. But if you’re a freelancer who was paid via a third-party payroll company where you got taxes taken out of your paycheck, you may qualify.
Basic info you need to file for unemployment
There's a list of basic information you need to know when filing for unemployment, regardless of which state you live in:
- Full name, as it's shown on your identification document
- Identification document—driver's license or ID
- Social Security number
- Contact information (home address, phone number, email address)
- Bank or credit union account and routing numbers (for direct deposit)
You'll also need to provide information about your employment history in the last 18 months. The list includes:
- Name and contact information (addresses, phone numbers) of all employers
- Work start and end dates, plus gross wages
- Recall date, if you're temporarily laid off instead and have a set date for your return
In some instances, you might need to provide additional information, plus all the info above. For example:
- If you're a union member: The name and local phone number of the union
- If you were in the military: Your DD-214 (certificate of release)
- If you were a federal government employee: Your standard form 8 (SF-8)
- If you're not a U.S. citizen: Your work authorization information or alien number
- If you have children: Their social security number and date of birth
Some states also require you to specify the reason for leaving those jobs. Additionally, it's important that the ID information you provide matches the records with the Social Security Administration or the Department of Motor Vehicles (DMV).
How to apply for unemployment
To apply for unemployment, contact the unemployment insurance agency in your state of residence or past employment. If you lived and worked in different states, Sanborn says you can choose which state to draw benefits from, but it's generally recommended to file in the state of your past employment. Depending on the state, you can file a claim online, by phone, or in person.
Some states require waiting periods, in which you need to be unemployed for a certain amount of time before you can collect benefits. But it's recommended that you contact your state UI agency as soon as you become unemployed. “Don’t wait until you think you qualify,” Sanborn says. “It can be such a hassle and such a long, drawn-out process that the sooner you start, the better.”
When you'll receive your first unemployment check
The “waiting period” required by some states is often a week. But in some states, it may take three to six weeks for you to get paid your first check. Keep in mind that severance pay or vacation time at the end of your job can delay when you begin receiving benefits.
Inaccurate information can also hold your benefits payment back. To prevent delays, make sure the details you provide about your former job (dates of employment, company address, wages) and your own contact information are accurate.
How to stay on unemployment
While collecting unemployment, you are required to file weekly or biweekly claims detailing your job hunt, job offers, earnings from part-time work, and any times you’ve refused work (and why).
There’s no one set path for all unemployed people because requirements vary by state. However, there’s a chance you’ll have to attend in-person meetings to update the unemployment agency on the progress of your job search. You also might be encouraged to attend training sessions to help you increase your job prospects.
“It’s not easy to stay on unemployment,” Sanborn says. “You have to go to a lot of in-person meetings and career training sessions on finding a job or updating a resume.” If you don’t report to your unemployment office for a check-in when you’re supposed to, you could lose your benefits.
“Usually you have to submit a list of applications and put down the name and phone number in case they check in on it,” Sanborn says. “But the biggest hassle is that you do need to keep going to those meetings.”
Unemployment benefits and taxes
Your unemployment benefits are taxable income and you need to report them on your federal tax return. If you want, you can choose to have the tax withheld by your State Unemployment Insurance agency.
Read this next: 1040 vs 1099 Income Tax Forms: What's the Difference?
How to collect unemployment longer
Sanborn’s best tip for the newly unemployed? Look for a part-time job. “Any week that you make enough so you don’t need unemployment is an extra week tacked on to the unemployment period you can collect,” she says. Before you ask, yes, you can get unemployment while working part-time under certain conditions—which varies between states.
Some states will prorate your unemployment by a percentage (or deduct an amount from your unemployment check for every dollar you earn over a set limit). Others will let you earn a certain amount from part-time work as a supplement to your unemployment before they reduce your benefits. If there are weeks when you make too much to collect benefits, you’ve just earned yourself a safety net of an extra week.
You might also be eligible for extended benefits if you exhaust the regular unemployment benefits payment during a period of high unemployment in your state. However, you're not automatically approved based on your initial claim, according to the Department of Labor—your state's agency will advise you on that matter.
What if your unemployment claim is denied?
There are multiple reasons for an unemployment claim to be denied. Always keep in mind that each state program has their own guidelines to approve or deny claims. Some common reasons are:
- You were fired for work-related misconduct (e.g. falsifying records, stealing harassment, assault of a coworker)
- You're not actively looking for work, are unavailable to work, or are unable to work (in some cases, disability benefits are the most suitable option)
- You voluntarily left your job without a good cause
If you don't fit in any of these common reasons for denial, you can (and have the right to) appeal the decision. First, read the letter carefully to understand the reason and the proper steps to appeal. Generally, you'll have to:
- File an appeal within the time frame determined by your state's program (usually 10 to 30 days)
- Gather evidence to support your case (for example, correspondence with your employer or pay stubs)
- Attend the hearing and present your case
Most states provide an appeal form (for example, here's California's appeal form), but also allow you to write a letter. Regardless of the format you choose, you'll have to explain why you disagree with their decision and mail the letter or form to the determined mailing address. If this information is not clear anywhere, you can contact the unemployment office for guidance. You can find the website and phone number of all U.S. state unemployment insurance offices on this page.
FAQs
Can you collect unemployment if you are fired?
Yes, you can get unemployment if you were fired. The number one eligibility requirement for unemployment is being fired for no fault of your own—meaning you didn't directly or purposely provoke your discharge.
Can I get unemployment if I was fired for performance?
Yes. Getting fired for normal reasons, like performance, usually isn't an obstacle to getting unemployment benefits. You might be ineligible if you're fired for misconduct, though. Misconduct usually encompasses criminal acts (theft and harassment, for example) or purposely breaking rules that jeopardize your work (for example, a nurse violating HIPAA).
Can you get unemployment if you quit?
Generally, no. There are specific instances where you may be eligible for unemployment if you quit your job, but that's not the norm. You'll have to prove that you had no choice but to quit (for example, for legal or safety reasons).
How is unemployment calculated?
The formula for how those benefits are calculated vary by state, so does the maximum benefit amount you can receive will. Search your state's unemployment insurance agency website for information.
How much unemployment will I get?
It depends on multiple factors, such as for how long you worked in the prior year (states often required that you worked for at least three or more complete quarters), how much you earned in that period, and how your state calculates the benefits.
Can I get unemployment if I'm self-employed?
It depends. The eligibility criteria for self-employed individuals is different from what is set for unemployed ones. Check out this article where we guide you through everything you need to know about unemployment benefits for self-employed individuals.
Amanda Cardoso contributed to the latest version of this article.