2007-02-01 04:50:14 · 8 answers · asked by reesespieces60202 2 in Business & Finance ➔ Taxes ➔ United States
Will it really reduce the amount I get back dramatically? I worked for the other half of the year and I am a single mother?
2007-02-01 04:56:11 · update #1
And i don't think I selected it for taxes to be withheld out of the checks
2007-02-01 05:00:38 · update #2
you report unemployment income on your tax return and you pay tax on the income
2007-02-01 04:53:41 · answer #1 · answered by Dizney 5 · 0⤊ 0⤋
It depends whether or not you had taxes withheld or not. If not you can expect to see a huge difference. Unemployment is not free money, you will pay taxes on it either up front or at the end of the year.
2007-02-01 05:00:54 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You will receive Form(s) 1099G from the state(s) where you received the benefits. The benefits are included in your taxable income on Line 19 of Form 1040, Line 13 of Form 1040A, or Line 3 of Form 1040EZ.
The benefits increase your taxable income, and you may owe additional tax.
The Earned Income Credit, if any, is the smaller of the EIC with and without the unemployment benefits. Therefore your EIC may be reduced.
2007-02-01 04:58:04 · answer #3 · answered by ninasgramma 7 · 0⤊ 0⤋
Unemployment is a taxable income and need to be reported in the tax return. Some states may or may not tax unemployment taxes. You can check the state tax profile for your state at
http://www.bestonlinetaxpreparation.com/State-Tax.html and select your state to see whether unemployment is taxable or not
2007-02-01 05:01:40 · answer #4 · answered by onlinetaxsiteswatch 2 · 0⤊ 0⤋
You report this as income - there is a place to report the type of income. Most states withold taxes from unemployment before you get it, but the 1099 or whatever your state sends you will have all that information on it.
2007-02-01 04:55:33 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Unemployment compensation is income and must be reported as such. Some states allow the recipient to have tax deducted from the check, before you recieve it.
2007-02-01 04:54:16 · answer #6 · answered by Anonymous · 1⤊ 0⤋
It will be considered UNTAXED income If you did not have them withhold taxes, and you will probably owe the government some money. Whether or not that is money you have to pay out of pocket will depend on your income level, number of dependents and deductions you take, whether or not you can claim earned income credit, among other things.
2007-02-01 04:56:26 · answer #7 · answered by piratephyl 3 · 2⤊ 0⤋
It shouldn't affect it much at all, as long as you had tax withheld from the checks, which they usually do.
2007-02-01 04:59:29 · answer #8 · answered by Speedy 3 · 0⤊ 0⤋