Get unemployment last year? Don't forget this tax break
Here's a heads up for anyone who received unemployment benefits last year.
You get a special tax break on your 2009 federal tax returns.
It's part of the American Recovery and Reinvestment Act, the so called Stimulus act.
Normally, unemployment benefits are taxable, but under the Recovery Act, if you got unemployment benefits during 2009, you can exclude the first $2,400 of these benefits on your tax return.
That reduces your tax obligation and lets you keep more money in your pocket.
The IRS says unemployment compensation includes state unemployment insurance benefits, railroad unemployment compensation benefits and benefits paid to a taxpayer from the Federal Unemployment Trust Fund.
It does not include worker's comp payments.
For a married couple, if each spouse received unemployment compensation in 2009, then each is eligible to exclude the first $2,400 of benefits.
How do you claim this deduction? Check out the details on the IRS Web site.
You get a special tax break on your 2009 federal tax returns.
It's part of the American Recovery and Reinvestment Act, the so called Stimulus act.
Normally, unemployment benefits are taxable, but under the Recovery Act, if you got unemployment benefits during 2009, you can exclude the first $2,400 of these benefits on your tax return.
That reduces your tax obligation and lets you keep more money in your pocket.
The IRS says unemployment compensation includes state unemployment insurance benefits, railroad unemployment compensation benefits and benefits paid to a taxpayer from the Federal Unemployment Trust Fund.
It does not include worker's comp payments.
For a married couple, if each spouse received unemployment compensation in 2009, then each is eligible to exclude the first $2,400 of benefits.
How do you claim this deduction? Check out the details on the IRS Web site.