| Jobs have been fleeting the last few years. | | | | the current Great Recession. Alas, tax is an issue |
| Fortunately, unemployment benefits have | | | | with anything involving money in America. The |
| provided a safety net for many people. Most | | | | same goes for this source. |
| people don’t realize that the taxability of | | | | Are unemployment benefits taxable? Sadly, the |
| these benefits is an issue. | | | | answer is yes. The IRS considers the payments |
| The Great Recession has move through | | | | you get as a form of wage replacement. This |
| practically every financial industry and the end | | | | results in them be classified as income. You know |
| result has been huge increases in unemployment | | | | what that means. Income is taxable. This raises |
| numbers. As I am writing this, the unemployment | | | | the rather odd scenario where a person who |
| rate stands at just under 10 percent. That is | | | | needs help because they have no job must |
| staggering. It means roughly 1 in 10 people are | | | | somehow pay tax out of their earnings. |
| without a job. Many others are working part time | | | | So, what do you do? Well, you can file out and |
| or reduced hours and thus are not counted as | | | | file a W-4 Form. It asks the government to do |
| unemployed. All and all, it is a fairly dire situation | | | | withholdings from the benefits so you don’t |
| and one can only hope business picks up and jobs | | | | owe at the end of the year. Alternatively, you |
| start being created. | | | | can pay quarterly estimated taxes. In either |
| If we learned anything in the Great Depression, it | | | | situation, you are going to receive less money and |
| was that certain safety nets needed to be built | | | | that is going to hurt when you need it most. |
| into society. Unemployment benefits are one such | | | | Are unemployment benefits taxable? Yes. Sadly |
| program and have really made a difference during | | | | so. |