Stimulus Plan Suspension of Federal Unemployment Tax
64Stimulus Plan Suspension of Federal Unemployment Tax
The economic stimulus package is going to provide some needed help for the unemployed worker. The American Recovery and Reinvestment Act of 2009 will have benefits for unemployed workers in numerous ways:
Limited Suspension of Federal income tax on unemployment benefits for 2009
Generally unemployment benefits are taxable under state and federal tax codes. In 2009 the federal tax portion of your liability will be reduced by $2,400 on benefits paid. Most states allow for the choice of having taxes taken out or not, either way you’ll be able to take the tax credit for 2009.
Extra $25.00 per week in Unemployment Benefits
Unemployment benefits will be increased for most persons receiving compensation. The stimulus plan does not allow for the extra benefit if you have earnings in a week that reduce your benefit payment to zero. In other words, if you don’t get a check for a particular week, they’re not going to give you the $25 just because.
In filing federal and state taxes in 2009 you still have to consider that out of the $2,400 you will only get total relief on $1,575. Your extra $25 per week will add $825 to your total compensation that is subject to federal and state taxes. States have not made mention of giving any kind of tax relief for the unemployed as of yet to match the fed tax credit.
Extension on Unemployment Compensation
The stimulus plan also extended the benefit weeks to 33 (Emergency Unemployment Compensation) to eligible claimants. Depending on your tax situation and how many weeks you were unemployed in 2009; your federal and state tax liability will change.
To learn more about the 2009 Economic Stimulus Package,
visit TurboTax Online. They have the latest information to help you benefit from this plan.
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I'm getting unemployment I hear bout this $25 increase but haven't seen it on my check,I never know whats going on...
TRUTH IS: 1. the $25. is gone 2. The emergency only extends number of weeks to collect, but most of us our benefit amount has run out so extra weeks don't matter if no money left to collect...another example of our govt trying to "Look" as though they have done something for us 3. Anyone losing job now gets NO MONEY unless employer says it was a layoff you have to go months til appeal date with no money appeal is NOT impartial and leans in favor of employer. 4. After winning appeal you still wait weeks and no money recd My field is gone in FL Why do they keep telling us to look for work when there are NO JOBS Why is the TRUTH never on tv or hardly anywhere online. It is time we unite and do something. In the 60s at least the people were HEARD....even if they got shot for speaking or thrown in jail.
I have noticed several questioning the $25.00 additional stimulus added to the unemployment benefits being stopped; there is no responding comment on those. I have personally tried to find this information as well. Let's see what snopes has to say...
i have been recieving benefits for about 2 months everytime i call in a check i am told about these stimulis checks but havent got one whats up with that
Are there any tax relief companies, that you can recommend ? with positive result and not scam?
I am on my last extension but I just learned I may be eligible for the EB after this one ends in 2wks. My question is, 2 wks ago I received the extra $25.00 in my check with a total of $50.00 for 2wks claimed. I just received my unemployment check on Friday and did not receive the extra $50.00 ($25 per wk) What happened and did this stop in a 2 wk. time.
Natasha 10 months ago
This is the most informed writing I’ve ever seen on this subject.