It's all taxable

[Rebecca Jo 1,962]

I kept waiting for them to roll it up into the tax cut extension, but they never did.

Unemployment earnings have always been taxable. In 2009, the unemployed got a little break and the first $2400 of unemployment income was not taxable by the Feds. But our boys on the Hill just left for Christmas break without giving the 10 million Americans out of work that same tax break for 2010.

And the media hasn't even mentioned it.

[LaL 418]

o hai thar

[^_^ 5,021]

I don't see the problem. If no one in the household has a job, isn't it very likely that a tax return filed with UI earnings alone will end up in very little actual tax liability (after exemptions)?

[Rebecca Jo 1,962]

o hai thar

o hai!

I don't see the problem. If no one in the household has a job, isn't it very likely that a tax return filed with UI earnings alone will end up in very little actual tax liability (after exemptions)?

Do you think that most drawing unemployment have no other income in the household?

[^_^ 5,021]

Do you think that most drawing unemployment have no other income in the household?

No, but if they do have other income then they're likely doing ok and don't need the tax break.

[Rebecca Jo 1,962]

No, but if they do have other income then they're likely doing ok and don't need the tax break.

Do some math on that. It can raise the tax liability substantially.

[Obama 2012 1,714]

You know, I really don't think it should be taxable.

It's already a tax to begin with. Why should you be paying taxes on taxes? Seems rather silly to me...

[^_^ 5,021]

You know, I really don't think it should be taxable.

It's already a tax to begin with. Why should you be paying taxes on taxes? Seems rather silly to me...

insurance premium, not a tax.

[Jewel-8 21]

I kept waiting for them to roll it up into the tax cut extension, but they never did.

Unemployment earnings have always been taxable. In 2009, the unemployed got a little break and the first $2400 of unemployment income was not taxable by the Feds. But our boys on the Hill just left for Christmas break without giving the 10 million Americans out of work that same tax break for 2010.

And the media hasn't even mentioned it.

According to the information I've already received from the IRS for 2010 taxes - unemployment benefits will be fully taxable. We will not have the break on the first couple thousand like we had last year.

[ready4ONE 5,400]

Good because seizing my ex-wife's/deadbeat mom's unemployment based tax return is the only way I will get my childrens back child support!

[Rebecca Jo 1,962]

Good because seizing my ex-wife's/deadbeat mom's unemployment based tax return is the only way I will get my childrens back child support!

Um.

If you are able to seize a tax refund, wouldn't you want it to be larger?

[mawilson 2,133]

Do some math on that. It can raise the tax liability substantially.

True that. I had to pay $2k extra in taxes for my wife's unemployment benefits (she was unemployed

for about 6 months in 2008), and then another $500 to the state.

[ready4ONE 5,400]

Um.

If you are able to seize a tax refund, wouldn't you want it to be larger?

I figure she will claim her third child, being raised by her dad and not her. If it falls short and I get it all, I will be fine with it.

[james&olya 1,121]

You know, I really don't think it should be taxable.

It's already a tax to begin with. Why should you be paying taxes on taxes? Seems rather silly to me...

Unemployment insurance is paid on your behalf by your employer and you do NOT pay tax on this benefit until/unless you actually collect the benefits. So how do you figure you should not have to pay your share of taxes? Of course, if your household income is low enough you won't pay anyway. Though aren't you one of those opposed to the concept of a graduated income tax?

[alienlovechild 75]

I kept waiting for them to roll it up into the tax cut extension, but they never did.

Unemployment earnings have always been taxable. In 2009, the unemployed got a little break and the first $2400 of unemployment income was not taxable by the Feds. But our boys on the Hill just left for Christmas break without giving the 10 million Americans out of work that same tax break for 2010.

And the media hasn't even mentioned it.

50% of Americans don't pay income taxes and those on UC are unlikely to be it the upper 50% of income. If you're getting a government check for sitting at home for 3 years, you shouldn't look a gift horse in the mouth.