Comments on: Unemployment Benefits Are Taxable

By: Tracey

Tracey — Tue, 19 Apr 2011 06:30:32 +0000

It’s automatic on yoru tax return. You don’t start getting taxed until $2401. So if you made $3000 in unemployment benefits only $6000 is taxable.

By: Tracey

Tracey — Tue, 19 Apr 2011 06:29:02 +0000

You don’t pay into unemployment, the employer pays into unemployment. Why do you think they work so hard to keep people from getting it if they when they were terminated due to costs? If if was your money they wouldn’t care.

By: Tracey

Tracey — Tue, 19 Apr 2011 06:08:43 +0000

I personally don’t believe that unemployment benefits should be taxed, but i can see how it is different from food stamps adn housing subsidy. Unemploymnet benefits are cash in hand to spend any way you choose. Food stamps can only be spent on certain food items and housing subsidy is where the housing is located, it can’t be moved and can’t be converted to cash to use in any specific way. However, I think that if unemployment benefits were not taxable, there also wouldn’t be any extensions.

By: Terry

Terry — Thu, 14 Apr 2011 17:06:39 +0000

I do not understand the part about the first $2400 being tax free. Where is that figured on a tax return? If my entire amount of unemployment compensation gets included in gross income, where does the $2400 exemption come off that total? I elected to have income tax withheld and still have to pay this year. It is terrible.

By: N/a

N/a — Tue, 12 Apr 2011 20:43:37 +0000

I don’t think that unemployment should be taxed. When you’re working you get taxed and pay into unemployment. They only figure at quarter of what you made that year and give you that amount for the time they estimate that you should find work. With the taxes taken out I can’t even afford to pay my bills. How am I suppose to live? I didn’t lose my job because of anything reckless. I’ve been unemployed over a month now and its horrible to live. It wasn’t my choice to be unemployed and live like I can’t. Finding jobs is horrible too. It’s not fair everything has to be taxed. It’s terrible.

By: freemarketer

freemarketer — Tue, 12 Apr 2011 17:45:09 +0000

I believe you meant exportation of jobs. Actually exportation of jobs is the result not the cause. The reason jobs are exported is due to the disparity in the cost and burden to the employer between domestic and foreign labor. Employers would prefer to keep jobs at home but we have made that burden and cost too high relative to the alternatives which include layoffs and outsourced foreign labor. It is just basic economics.

By: Dis7

Dis7 — Thu, 31 Mar 2011 04:40:35 +0000

Unemployment Compensation is not taxed because it is the result of jobs being imported overseas for slave labor. The direct cause of most unemployment in this nation is the importation of jobs.
Worker suicide in China has grown proportionately higher due to Corporate America taking advantage of a Communist State worker abuse program. Now the tide is turning. Chinese wages are going up because of gov’t mandates in China and the slave work schedules are getting eased. Terrible news for the “great democracy”.
This crud about comp being handed out freely is more statist fascist simplistic idiocy. We pay into it. It is not to be taxed at all.

By: Hector

Hector — Tue, 08 Feb 2011 02:24:37 +0000

Un-employment is taxed because it causes inflation and forces the individual to become a productive citizen.

By: guruinmt

guruinmt — Wed, 08 Dec 2010 02:53:17 +0000

I have made the maximum EIC before and had other additions and have NEVER gotten close to $6K-8K in refunds.

Sorry there is just no way for this to happen to a person on “welfare” which is really TANF which is primarily a work program which only has 60 months (5 years) of benefits since 2004.

Without earned income you do not get any refund anyway. NONE.

So basically I am calling bull on this post.

Although I do agree that unemployment being taxed is sort of silly.

By: cubieK

cubieK — Sat, 04 Dec 2010 00:39:33 +0000

I’ve thought the exact same thing. Why should the unemployed, many who worked all their lives and now through no fault of their own have lost jobs they’ve had for years have to pay taxes. Meanwhile there are millions on welfare and food stamps for literally decades (I personally know 4 who have scammed their way for over 25 years get 6K – 8K REFUNDS every year?! No wonder this country is in BIG trouble. Hows about congress stop paying the welfare and food stamps for those who have abused the system for as long as they have and give all that money to the NEW POOR Unemployed instead of stiffing them like they just did the other daY?

By: Ardith Richter

Ardith Richter — Tue, 23 Nov 2010 21:37:02 +0000

hi, nope, this little bit that helps and Ed gets 215.00 once aweek for the 615.00 that he did make..just puts us in a higher income tax bracket and i get to pay the higher tax.so if I make 17,000 plus eds 12,000, that makes us 29,000 for the year and that is a higher income taxable table for 2. as a temp they take out of my check for the year 483.00 on a fed level on a state they take out a 785.00..I do the math and I pay into the system an extra 2,500 Fed and state 850.00 for working 40 hours aweek.. wow someone could go on holiday with my monie..hahaaa not us..Iam 60 Ed has been harmed at work loss of shoulder neck and back movement..it is 5 years. yep the real world and the working poor. ardy richer milwaukee wi

By: Soccer9040

Soccer9040 — Sun, 07 Feb 2010 19:45:08 +0000

I’m fine with it being taxed, but repayment is a slippery slope.

By: Tim

Tim — Sun, 07 Feb 2010 01:15:48 +0000

I’m fine with unemployment being taxed. if not, then i think it should be repaid at a minimal interest rate.

By: Kosmo @ The Casual Observer

Kosmo @ The Casual Observer — Thu, 04 Feb 2010 21:01:53 +0000

Geoff – I assume that you’re asking whether this is money that has been previously taxed at the corporate level?

It has been a long time since I’ve studied corporate tax (junior year of college), but I am 99% sure that the amount paid to FUTA is deducted from income before the income is taxed – just as any other business expense.

By: pays to live green

pays to live green — Thu, 04 Feb 2010 19:11:06 +0000

Great information to know. I am not currently or have been on unemployment, but you never know when that day could come…