Category Archives: Unemployment

IRS Outlines Additional Steps to Assist Unemployed Taxpayers and Others

IRS has added a new resource – just for you. They have opened up their offices on Saturdays. How that helps people who don’t have jobs and can come in on weekdays, I don’t understand. It certainly is a big help to people who work, though!   Video Owe Taxes But Can’t Pay? English Unemployment Compensation: […]

Ask TaxMama Issue 540 – A Long Weekend

Dear Family, This week went by so quickly, I didn’t even have time to blink. Perhaps not so for some people. Working on an article, I called the IRS DC press office one morning, only to get the answering service message that the office was closed. So contacted a couple of those cool guys by […]

Five Important Facts About Your Unemployment Benefits

Courtesy of IRS  Taxpayers who received unemployment benefits in 2009 are entitled to a special tax break when they file their 2009 federal tax returns. This tax break is part of the American Recovery and Reinvestment Act of 2009. Here are five important facts the Internal Revenue Service wants you to know about your unemployment […]

First $2,400 of Unemployment Benefits Tax Free for 2009

IR-2009-29, March 26, 2009 WASHINGTON — All or part of unemployment benefits received in 2009 will be tax free for many unemployed workers, according to the Internal Revenue Service. “This morning we learned that a record 5.6 million people were receiving unemployment benefits in the middle of March. This underscores the need for the relief […]

Disaster Unemployment Assistance

Today we hear from Jan in San Diego, CA who’s trying to help her clients. “We are trying to help clients and friends from this office. Do you know how to file a DUA (Disaster Unemployment Assistance Claim)? The number at EDD is so busy they hang up on you and you cannot file a […]

Unemployment IRAs

Today TaxMama hears from Tom in Oklahoma, who’s had a bad year. “Due to unemployment and high child support payments, I’ve had to draw money from my IRAs. I know the exclusions for penalty purposes…but is there anything else I’m missing to avoid the penalty. For instance, suppose I owe taxes this year because no […]

Wasted Credit

Today TaxMama hears from Eddie in Tampa, Florida, who has this tale of woe. “For the first half of 2005, I was living off of my unemployment benefits, and then a VA stipend, which wasn’t taxable. From late May until end of August, I had work-study. From August until the present, I have lived entirely […]

Severance Pay

Today TaxMama hears from Jack who asks “I was laid off and received 46 weeks severance pay. My question is this. They deducted more income tax out of this check then they took out for a whole years pay. Is there a different tax for severance pay? I think it should be the same as […]

Laid Off by Your Business

Today TaxMama hears from Debra in Janesville WI, who asks, “Can a small business owner claim unemployment benefits?”

401(k) Penalty

Today TaxMama hears from Don of Starkville, MA wants to know, “I was told that if you were laid off from a job and withdrew your money from your 401K, you did not have to pay the 10% early withdrawal penalty only the federal and state taxes on the money.” and Another reader remarks, “I […]