Unemployment Benefits Receive a Special Tax Break

Unemployment Benefits Receive a Special Tax Break

Thanks to the American Recovery and Reinvestment Act of 2009, unemployment benefits received during last year are eligible for a special tax break. This includes state unemployment benefits, railroad unemployment compensation, and benefits from the District of Columbia.

The first $2,400 you received for unemployment benefits during 2009 are now tax free. All other benefits are taxed normally, the way unemployment benefits were taxed in the past. This could save you $480 in taxes if your tax rates is 20%.

Take a look at the 1099-G when it arrives in your mail to … Read more at 2009 Tax.

Unemployment Benefits Receive a Special Tax Break

Thanks to the American Recovery and Reinvestment Act of 2009, unemployment benefits received during last year are eligible for a special tax break. This includes state unemployment benefits, railroad unemployment compensation, and benefits from the District of Columbia.

The first $2,400 you received for unemployment benefits during 2009 are now tax free. All other benefits are taxed normally, the way unemployment benefits were taxed in the past. This could save you $480 in taxes if your tax rates is 20%.

Take a look at the 1099-G when it arrives in your mail to discover your income from unemployment benefits last year. And if your spouse also received benefits, God forbid, they will not have to pay tax on the same amount of income. When completing your tax forms, subtract the $2,400 from the amount in box 1 of the 1099-G and enter this new amount on your 1040 where appropriate.

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IRS Publication 17

IRS Publication 17

Title ‘Your Federal Income Tax’, Publication 17 is the most important IRS publication that you can have available while preparing your income taxes for 2009. This publication is available in a number of different formats including online, in a PDF, and in printed format.

The two electronic versions of Publication 17, the online version and the PDF version, have a multitude of links to other useful information and making getting the best answers to your questions easy and quick. And not only does the IRS have information on tax laws that have been in existence for … Read more at 2009 Tax.

IRS Publication 17

Title ‘Your Federal Income Tax’, Publication 17 is the most important IRS publication that you can have available while preparing your income taxes for 2009. This publication is available in a number of different formats including online, in a PDF, and in printed format.

The two electronic versions of Publication 17, the online version and the PDF version, have a multitude of links to other useful information and making getting the best answers to your questions easy and quick. And not only does the IRS have information on tax laws that have been in existence for decades, but the publication also has information on tax laws that were just passed last year. This recent information is very valuable and can increase your return significantly.

There are two languages available for the publication including Spanish, if English is not your first language. To get an electronic copy of the publication go to the IRS.gov website. Printed publications can be ordered by calling the IRS at 1-800-829-3676.