Ideally, you neither owe nor get a return. Running a business will obviously be different than working for someone, but the idea is the same. For example, in construction, you will likely be taxed heavily when you are working, so if you are on unemployment, you don't have taxes taken out. This gives you more money when you need it most, and you likely will equal out when you consider your taxes are taken out as if you were working the whole year. When you click over to the higher tax brackets as the year goes on (and your gross increases), the slight difference will pretty much take care of the unemployment income, and so 95 percent of the time, you break even. Even if not, outs only a couple hundred bucks ime.