Indiana § 22-4-17-2.5 - Filing; income taxes
Full text of Indiana Indiana Code § 22-4-17-2.5 — Filing; income taxes, with citation guidance and answers to common questions.
§ 22-4-17-2.5. Filing; income taxes
Sec. 2.5. (a) When an individual files an initial claim, the individual shall be advised of the following:
(1) Unemployment compensation is subject to federal, state, and local income taxes.
(2) Requirements exist concerning estimated tax payments.
(3) The individual may elect to have income taxes withheld from the individual's payment of unemployment compensation. If an election is made, the department shall withhold federal income tax at the applicable rate provided in the Internal Revenue Code.
(4) After December 31, 2011, the individual may elect to have state adjusted gross income tax imposed under IC 6-3 and the local income tax imposed under IC 6-3.6 deducted and withheld from the individual's payment of unemployment compensation. If an election is made, the department shall withhold state adjusted gross income tax imposed under IC 6-3 and the local income tax imposed under IC 6-3.6 at the applicable rate prescribed in withholding instructions issued by the department of state revenue.
(5) An individual is allowed to change an election made under this section.
(b) Money withheld from unemployment compensation under this section shall remain in the unemployment fund until transferred to the federal taxing authority or the state (as appropriate) for payment of income taxes.
(c) The commissioner shall follow all procedures of the United States Department of Labor, the Internal Revenue Service, and the department of state revenue concerning the withholding of income taxes.
(d) Money shall be deducted and withheld in accordance with the priorities established in regulations developed by the commissioner.
As added by P.L.166-1996, SEC.4. Amended by P.L.3-2008, SEC.159; P.L.2-2011, SEC.15; P.L.197-2016, SEC.118.
Source: official Indiana text · Last verified 2026-08-27
Frequently Asked Questions About Indiana § 22-4-17-2.5
What does Indiana Code § 22-4-17-2.5 cover?
Section 22-4-17-2.5 ("Filing; income taxes") is part of the Indiana Code, the codified statutory law of Indiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Indiana § 22-4-17-2.5?
A common citation format is "Indiana Code § 22-4-17-2.5" (Indiana). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Indiana law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Indiana official source linked on this page or consult a licensed Indiana attorney.
How does Indiana § 22-4-17-2.5 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Indiana can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Indiana.