Take my Job: Take my Money…
As more and more of us start feeling the aftershocks of President Bush’s Economic Development Plan, many people who have never been unemployed find themselves turning to their unemployment benefits to help pay the bills and stay afloat financially for a while longer. Just hang on and hope things will improve.
Many of you who are facing unemployment for the first time should be aware that these unemployment checks, small as they are, are fully taxable for federal, and perhaps state, income taxes. Yes, even though you may still be out of work come next april, even though your benefits may have run out, even though your income may have run out, your friendly IRS will still be looking for a portion of that income. Just a little extra “kick in the teeth” for those who are already down. If you have not had taxes withheld from your weekly checks, or set aside some money to cover these taxes, be prepared to pay.
Of course, the IRS can be understanding, and willing to arrange for installment payments or other terms, but if you no longer have an income, this could still be a problem. Be Prepared!