How Illinois Unemployment Payments Work and What You Need to Know
What Illinois Unemployment Payments Are and Who Receives Them
Illinois unemployment payments are weekly cash payments sent to workers who have lost their job through no fault of their own. The state's Department of Employment Security (IDES) runs the program and sends money by direct deposit or debit card, usually within two weeks of your claim being approved. The amount you receive depends on your earnings history over the past year—specifically, the highest quarter you earned in the 12 months before you filed.
You must have worked in Illinois and paid into the unemployment insurance system through payroll taxes to receive payments. If you quit your job, were fired for misconduct, or are self-employed, you will not receive payments. The program is designed for people temporarily out of work who are actively looking for a new job.
Key Takeaways
- Illinois sends unemployment payments weekly by direct deposit or debit card, with the amount based on your highest-earning quarter in the past year.
- You must file your claim with IDES through their website or by phone, and you need your Social Security number, driver's license, and recent pay stubs or tax returns.
- You can receive payments for up to 26 weeks in most cases, though the number of weeks available changes based on the state's unemployment rate.
- You must report your work search activities every two weeks and tell IDES immediately if you return to work, even part-time.
- If IDES denies your claim or stops your payments, you have the right to appeal within 30 days of the decision letter.
How to File Your Claim with IDES
To file a claim, go to www2.illinois.gov/ides and click "File a Claim" or call IDES at 1-800-244-5631. You will need your Social Security number, driver's license or state ID number, and information about your last employer—their name, address, and the dates you worked there. Have recent pay stubs or a tax return handy so you can report your earnings accurately.
The online system asks you to describe why you left your job or why your employer let you go. Be specific and factual. If you were laid off, say that. If your hours were cut, explain how many hours you normally worked and how many you work now. IDES uses your answer to decide whether you meet the basic rule: you lost work through no fault of your own.
After you file, IDES sends you a confirmation number and tells you when to expect your first payment. Most claims are processed within two weeks, but if IDES needs more information, they will mail you a form or call you. Check your mail and answer your phone during business hours.
How Much You Receive and for How Long
Illinois calculates your weekly payment amount by taking your highest-earning quarter in the 12 months before you filed and dividing it by 26. The result is your weekly benefit amount, up to a maximum that changes each year. In 2024, the maximum weekly payment is $661, but most people receive less because their earnings were lower.
You can receive payments for up to 26 weeks in a benefit year, which runs from July through June. However, when Illinois's unemployment rate is high, the state sometimes extends benefits to 39 weeks. IDES will tell you how many weeks you are may have access to to when they approve your claim. If you exhaust your benefits before finding work, you may be able to file a new claim in the next benefit year if you have worked enough hours.
Payments are sent every week on the same day, usually by direct deposit into your bank account. If you do not have a bank account, IDES issues a debit card that works like a prepaid card. You can withdraw cash at ATMs or use it to pay bills.
What You Must Do to Keep Receiving Payments
Every two weeks, you must file a "continued claim" to tell IDES you are still out of work and looking for a job. You do this online through your IDES account or by phone. IDES asks you how many hours you worked, how much you earned, and whether you turned down any job offers. Answer honestly—if you worked and did not report it, IDES will discover it later and ask you to repay the money.
You must also be actively searching for work. IDES does not require you to prove every application or interview, but if you are called in for an investigation, you should be able to describe the jobs you looked for and when. If you refuse a suitable job offer without good reason, IDES can stop your payments.
If you return to work, even part-time or temporary work, report it immediately on your next continued claim. Your payment will be reduced by a portion of what you earn, but you will still receive some money if your part-time wages are low enough. Do not skip filing your continued claim because you worked a few hours—that is how IDES finds out and adjusts your payment correctly.
When IDES Denies Your Claim or Stops Your Payments
IDES may deny your claim if you quit your job without good reason, were fired for misconduct, or do not meet the work history requirement (usually 18 weeks of work in the past year or $1,300 in earnings). They may also stop your payments if you refuse a job offer, do not file your continued claim on time, or report earnings incorrectly.
When IDES makes a decision against you, they mail you a letter explaining why. This letter includes a deadline to appeal—usually 30 days from the date on the letter. To appeal, you can file online through your IDES account, by mail, or by phone. You will have a chance to explain your side of the story, and IDES will review the decision.
If you disagree with the appeal decision, you can request a hearing before an administrative law judge. This hearing is free and can happen by phone or video. Many people win at the hearing level because they get to explain their situation in detail and answer questions directly.
Taxes and Other Deductions from Unemployment Payments
Unemployment payments are taxable income. IDES does not automatically withhold federal income tax, but you can ask them to withhold 10 percent if you want to avoid a tax bill at the end of the year. To set up withholding, log into your IDES account and change your tax withholding election, or call 1-800-244-5631.
Illinois does not tax unemployment payments, so you do not owe state income tax on the money you receive. However, you will owe federal tax unless you withhold it. If you do not withhold and owe tax, you can pay it when you file your tax return, or you can set up a payment plan with the IRS if the amount is large.
IDES does not deduct child support, student loans, or other debts from unemployment payments. However, if you owe back child support, a court order can direct IDES to send your payments to the state's child support enforcement agency instead of to you.
Other Programs That Work with Illinois Unemployment
While you receive unemployment payments, you may also be able to receive food assistance (SNAP), Medicaid, or utility assistance through Illinois. These programs have separate income limits and rules, but unemployment payments count as income when you apply. Contact your local Department of Human Services office or call 1-877-20-ILDHHS to learn what you might be able to receive.
If you are training for a new career, you may be able to receive unemployment payments while you are in school through the Approved Training Program. You must get approval from IDES before you enroll, and the training must lead to a job in a field where Illinois has a shortage of workers. Ask IDES whether your program qualifies.
Frequently Asked Questions
How long does it take to get my first payment after I file?
Most people receive their first payment within two weeks of filing. IDES processes claims in the order they are received. If IDES needs more information from you, they will contact you by mail or phone, and the process may take longer. You can check the status of your claim anytime by logging into your IDES account online.
What happens if I find a part-time job while collecting unemployment?
Report your part-time earnings on your next continued claim. IDES will reduce your payment by a portion of what you earn, but you will still receive some money if your wages are low. The exact reduction depends on how much you earn and your weekly benefit amount. Never skip reporting work—IDES will find out and may ask you to repay overpayments.
Can I receive unemployment if I was laid off due to lack of work?
Yes. A layoff due to lack of work is one of the main reasons people receive unemployment payments. File your claim as soon as you are laid off and explain that your employer had no work for you. This is not your fault, so you should be approved.
What if I disagree with the amount IDES says I should receive?
Check the earnings information IDES used to calculate your payment. You can see this in your IDES account. If the earnings are wrong—for example, if your employer reported the wrong amount—contact IDES and ask them to correct it. You can appeal the payment amount decision the same way you appeal a denial.
Can I receive unemployment if I was fired?
It depends on why you were fired. If you were fired for misconduct—such as stealing, violence, or repeated rule-breaking after warnings—you will not receive payments. If you were fired for poor performance, inability to do the job, or other reasons not related to misconduct, you may receive payments. File your claim and explain the reason you were fired. IDES will contact your employer to verify the story.