Tax Change

**Trishagirl** · 01-26-2011, 04:22 PM

I heard today that the only tax change is that the govt is taxing unemployment isn't that down right terrible. My dh has been unemployed this yr 2 times and now we have to pay taxes on it!!!

**akolb** · 01-26-2011, 04:40 PM

From what I understand, you have always had to pay tax for any unemployment benefits amount after the first $2400. You can request to have the taxes withheld the same as a paycheck if you will be receiving more that this amount.

I would suggest contracting a tax service, or even just searching the Q&A section on an online tax service for accurate information.

**alotofgooddeals** · 01-26-2011, 04:40 PM

and you are taxed on your unemployment...I think its been that way for a long time.....not new here....sorry to hear about dh....hope things get better.

**moasmom** · 01-26-2011, 04:55 PM

Yes, taking income tax out of unemployment payments isn't new. I agree it can feel unfair, but it is income, after all.

Kara

**layman75** · 01-26-2011, 04:59 PM

Unemployment has always been taxed. I forgot that I didn't have taxes taken out last year so the tax return is going to be 600 less than I planned on. But early last year, I was still head of household and didn't pay taxes. Then got married end of the year so now the marriage penalty kicked in and between unemployment and paycheck, we paid the equivalent of my paycheck for the year to the feds.

**Momto5RN** · 01-26-2011, 06:26 PM

yup its always been taxed as income last time i had to collect was 12 years ago and i paid taxes on it .

i never believe what i hear - only what i actually hear for myelf and then i double check it even in case i misheard - or i need to read from a reliable source.

**Sassyclass** · 01-26-2011, 09:33 PM

Yup, that isn't something new. I have my taxes deducted by unemployment, one less thing I have to worry about.

Cat

**NikoSan999** · 01-26-2011, 09:36 PM

No, it's not the only tax change...I just recently got a job...as of Jan 1st, taking effect 2 weeks ago, there is less social security taken out of paycheck but more income tax.
My check was cut $13 and it wasn't that big to begin with. Another person, single, same pay was $8 less. Apparently penalized for being marriage...oh wait!!!...yeah, the marriage tax.

Unemployment is taxable...I had mine taken out each check...

**YankeeMom** · 01-27-2011, 10:15 AM

Not new here either. When hubby was on unemployment a few years ago we had to pay taxes on it. Still sucks though.

**Telephus44** · 01-27-2011, 10:24 AM

Unemployment has always been taxed. Personally, I wish you could choose how much they withhold, because if you ask them to withhold taxes they only take 10% - for those of us in higher brackets that's not nearly enough and we still end up owing at tax time.

I believe the exemption for "no federal income tax on the first $2400 of unemployment benefits" was for tax year 2009 only. DH drew some in 2010, so I was looking it up on the IRS website the other day.