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UCX: Unemployment Insurance & Benefits after the Military

Updated | Julie Provost
UCX

Unemployment Benefits & for Military After Your Service

With the Unemployment Compensation for Ex-Servicemembers Program (UCX), you can qualify for unemployment benefits once your time in the military is over. Review your state government’s official site to find the UCX program options near you.

How Do I Qualify for Unemployment Compensation as a Veteran?

  • To qualify, you must have served on active duty within a military branch or on reserve status for at least 90 days.
  • You typically must have been honorably discharged. If you were discharged with a condition of “other than honorable,” received a “bad conduct” discharge, or dishonorable discharge, which includes a general court-martial, you may not qualify for UCX benefits.

 

>> Getting affordable life insurance coverage with no medical exam or labs required is easy. Get a no-obligation, free consultation to determine your eligibility.

 

How Does UCX Work?

  • You do not make a payroll deduction for unemployment insurance protection when you serve in the military, as you would normally do to collect unemployment insurance benefits.
  • The various branches of the military pay for the benefits.
  • The laws of the state where you filed for unemployment determine your benefit amount, the number of weeks you will receive the benefit, and other eligibility conditions.
  • Generally speaking, you need to seek work while you file for unemployment. You also might be unable to do so if you work towards self-employment or running your business. This does depend on the laws of the state.

Unemployment Payments

  • The unemployment insurance payments you receive are intended to provide temporary financial assistance to unemployed workers who meet the state law requirements under which they file.
  • Each state administers a separate unemployment insurance program with guidelines established by Federal law.

Filing Your Claim

  • You should contact your state workforce agency as soon as possible after your discharge from the military.
  • You need to make sure you give them complete information, such as addresses and dates, so that there are no hiccups along the way.
  • You should file in the state you are currently living in, not where you were stationed last. This is a little different from civilians filing for unemployment insurance as they will need to file in the state they last worked in or if they move to a new state, they will need to go by the unemployment laws of the state they last worked in.
  • 26 weeks is the maximum amount of unemployment insurance you can collect.
  • You must file weekly or biweekly and answer questions about your eligibility. This isn’t something you do once, forget about, and then receive money for the next 26 weeks. You will need to report any earnings from work you have been able to do during the week. You also need to report any job offers or refusals.

Job Help

  • You may be directed to the state employment service so they can help you find employment. Even if you are not required to do so, working with them can help you in your job search.
  • They have current labor market information and provide a wide array of re-employment services free of charge.
  • They can refer you to job openings in your area or other places if you are willing to relocate.
  • They can also refer you to various training programs offering testing and counseling to help you determine other jobs you might be interested in pursuing.
  • They can refer you to other agencies that can help if you have special employment needs.

What About Taxes?

Unemployment compensation is taxable income. This is true federally and for most states but make sure to check with your state to find out for sure. This income will be reported on a 1099-G form.

However, if unemployment income was your household’s only income for the year, you might not make enough to have to pay taxes on the amount. You will need to check this with a tax professional or accountant.

If you are getting close to your ETS date, it is time to think about if you will be applying for unemployment insurance. Unlike civilian work, you can apply even though you were not “fired” from the military. Make sure you qualify and figure out where you need to file to get everything ready ahead of time.

 

>> Getting affordable life insurance coverage with no medical exam or labs required is easy. Get a no-obligation, free consultation to determine your eligibility.

 

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About the author

Julie Provost is a freelance writer, and blogger. She lives in Tennessee with her National Guard husband and three boys.

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