Tax break for people receiving unemployment benefits
KENNEWICK, Wa;-- Under the American Recovery and Reinvestment Act of 2009 anyone who got unemployment benefits last year is entitled to a tax break on the first $2,400.
IRS representatives say with the current economic climate this is very important for people to know about and take advantage of. In the past unemployment benefits have been taxable but the Recovery Act changed that, at least for 2009.
To know exactly how much of your benefits will be taxed you need to get a 1099-G form which shows how much you received in benefits last year. Then, simply subtract $2,400 from that total and enter the new amount of taxable benefits.
To see a copy of the 1099-G form you can go to the IRS website. They can also mail you any forms that you need.