IRS and unemployment?

Question

I worked almost 11 months out out this year. I just recently lost my job due to them relocating, im now receiveing Unemployment. my question is i chose to have some fed and state come out of my check for unemployment, but they only take out 10 pecent for fed, and i think 2% for my state Which is RI. I am eligible for the child credit. So since i did work most of 06, and since all of fed is not being totally withheld, i know i will have to owe some. So will i also be eligible for a refund, as well as oweing for the weeks on Unemployment?

Answer 1

The fact that you only worked for 11 months does not affect your entitlement to Child Tax Credit or Earned Income Credit. All that matters is your income and earned income respectively. You may find that they are taking just enough federal out of your paycheck, although state seems a bit low.

The onlyh way to do this is to print off the 2006 return (its available it www.irs.gov - look under fomrs and publications) and do a quick calculation using your last paystub and estimate of UI for the rest of the year.

Good luck with the job hunt.

Answer 2

You will have to declare your unemployment on your income taxes for this year. If you had enough withheld from your regular pay,it might cover any shortfall not coverd by the unemployment withholdings and you may still get a refund. Seek help with any questions you may have at your local IRS office or a tax prep. office like H&R Block. Help is available through most financial software. I do my own taxes and use tax software that can be updated and seek IRS or state tax office help when I have a question about an entry or a situation that I'm not sure about.
Hope this helped you. At least if you have to pay more income tax,the tax bite won't be as bad as if you didn't have unemployment withhodings.