Unemployment Tax ?

[windjammer]

Looks like I'll be drawing unemployment soon. Worked 44 years for the same company and never been out of a job.

Now, primarily, thanks to China, our company is having to close the doors in about a month.

Question is, when receiving unemployment, do you have to pay income tax on it?

 

[rocketdog]

Looks like the answer is yes.

http://tnpaws.tnui.net/GuideToUIBenefits.pdf

But iirc there was some talk of changing this because of the economic downturn....

 

[Bassamatic]

The messiah excluded the first $2400 from federal taxes. After that yes.

 

[Spotteddog]

Yes...

 

[m657]

...and why not? Social security disability income is taxed too.

 

[Class III]

Yes, you have to pay federal tax on unemployment benefits. But, being in Tennessee we do not have a state income tax. That will save you a few bucks come April 15, 2010. Good luck finding a career.

Class III

 

[Wickahoney]

I don't believe Social Security Disabilty is taxed or taxable until you reach a certain income thresh hold.

The first year I got it, after fighting them for 5 years, they owed/payed me for the proceeding three years. That took my income over the threshhold and I paid a few dollars bue to the total paid. Since then I haven't paid any taxes, State or Federal on one years worth of SSA Disability.

As ALL of my income is now disability, VA, SSA etc none is taxable and the VA stuff doesn't figire into the total or threshhold.

As for Unemployment, the states don'
t normaly but some doand you will want to check. The Feds used to tax from the first dollar but now have introduced the threshold as mentioned.

RWT

 

[CH47gunner]

...and why not? Social security disability income is taxed too.

Mine's not taxed, is yours?
No taxes are taken out of either my SS Disability or VA Disability.

And yes, Unemployment Insurance is taxable income. So you are taxed twice on it. Once when your paycheck is issued and the deductions are done and, once again when/if you collect it.

Bruce