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Old 12-17-2009, 06:50 AM
 
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I was laid off after 10 years with the same company in July. I haven't been having my unemployment compensation taxed for withholding as I was barely hanging on financially while I was still working. The idea of losing a third of my UC to taxes isn't an option. What are the ramifications of not doing so with the IRS? Are there repayment plans, etc.? Can anyone else with the same experience enlighten me?
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Old 12-17-2009, 01:08 PM
 
Location: New Jersey
165 posts, read 420,086 times
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Quote:
Originally Posted by kyle19125 View Post
I was laid off after 10 years with the same company in July. I haven't been having my unemployment compensation taxed for withholding as I was barely hanging on financially while I was still working. The idea of losing a third of my UC to taxes isn't an option. What are the ramifications of not doing so with the IRS? Are there repayment plans, etc.? Can anyone else with the same experience enlighten me?
I haven't taken out tax either, it was financially out of the question. Many unemployed people are going to be faced with this. Currently, as of last February stimulus, the first $2,400 of UI are not taxed for 2009. There is a bill since February regarding taxation of UI, it is being revisited in Congress. This situation is ongoing, there may be further help, keep fingers crossed.
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Old 12-17-2009, 01:37 PM
 
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Same here, Cant afford to have taxes taken out either, I'm estimating I'm going to be owing over a grand. Sucks we have to pay taxes on Unemployment.
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Old 12-17-2009, 02:13 PM
 
2,949 posts, read 5,268,786 times
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Originally Posted by OHGreat View Post
Same here, Cant afford to have taxes taken out either, I'm estimating I'm going to be owing over a grand. Sucks we have to pay taxes on Unemployment.
I agree,ohgreat. I haven`t had taxes taken out either. Like everyone else,I need every cent I can get. Taxing UE doesn`t make any sense. Obviously a person on UE is only getting a fraction of what they used to make in salary. To make them give a third of that back to the government defeats the purpose of what UE is for.
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Old 12-17-2009, 03:37 PM
 
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Originally Posted by spm62 View Post
I agree,ohgreat. I haven`t had taxes taken out either. Like everyone else,I need every cent I can get. Taxing UE doesn`t make any sense. Obviously a person on UE is only getting a fraction of what they used to make in salary. To make them give a third of that back to the government defeats the purpose of what UE is for.
spm as you have kids I think you will probably end up not owing anything, I was hoping my house was going to cover it as well but it isn't going to be the case, I did a quick figure based on last years tax return and I'm going to owe a grand at least probably since I have no other write offs other then my house. While I will be able to pay it, it will just come out of savings which once unemployment goes I will be in a world of hurt starting to use a lot more of that or not. I honestly dont know what I am going to do at that point as I do have the option of moving home as in back to Mom and Dads.
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Old 12-17-2009, 08:58 PM
 
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Originally Posted by OHGreat View Post
spm as you have kids I think you will probably end up not owing anything, I was hoping my house was going to cover it as well but it isn't going to be the case, I did a quick figure based on last years tax return and I'm going to owe a grand at least probably since I have no other write offs other then my house. While I will be able to pay it, it will just come out of savings which once unemployment goes I will be in a world of hurt starting to use a lot more of that or not. I honestly dont know what I am going to do at that point as I do have the option of moving home as in back to Mom and Dads.
Well,my oldest 2 kids are on their own and my youngest gets claimed by their mother and I can`t write off child support. So I have no write offs. I took out my retirement to help live and so I will owe a penalty and taxes on that as well. I`ll just add back taxes to my growing list of debt.
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Old 12-17-2009, 09:16 PM
 
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Quote:
Originally Posted by spm62 View Post
Well,my oldest 2 kids are on their own and my youngest gets claimed by their mother and I can`t write off child support. So I have no write offs. I took out my retirement to help live and so I will owe a penalty and taxes on that as well. I`ll just add back taxes to my growing list of debt.
That sucks, So you will be owing as well then. Ive tried to stay away from my retirement fund at this time, Not much in there and after the taxes and penalty I would be lucky to last a year on it. I honestly dont know what I will do about my house when Unemployment ends. Its underwater and I cant sell it and putting savings into it doesn't make much sense to me based on it being underwater.
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Old 12-17-2009, 11:34 PM
 
1,359 posts, read 4,709,028 times
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I'm going to have pre-payment penalties for 2009 too. Bad part is that I had a pretty decent income for the first six months before losing my job, so my tax bill will the highest it has been for a while.

I am having them withhold some of my unemployment [10% is all they've offered to withhold] just in an attempt to minimize the tax liability as much as I can. No idea what is going to happen come tax time, but I do have some decent deductions for mortgage interest and property taxes that will hopefully make things easier. Really worried about the penalties.
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Old 12-18-2009, 01:48 AM
 
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Originally Posted by e_cuyler View Post
I'm going to have pre-payment penalties for 2009 too. Bad part is that I had a pretty decent income for the first six months before losing my job, so my tax bill will the highest it has been for a while.

I am having them withhold some of my unemployment [10% is all they've offered to withhold] just in an attempt to minimize the tax liability as much as I can. No idea what is going to happen come tax time, but I do have some decent deductions for mortgage interest and property taxes that will hopefully make things easier. Really worried about the penalties.
They killed me. I was making monthly payments toward it with no problem. But then when I lost my job,I couldn`t pay it anymore. I called them and told them when I get a job I can start paying them back but until then there is nothing I can do. Twice this year they have taken money out of my bank account without my knowledge. I didn`t find out until I checked my balance that it was overdrawn. So both times I ended up having to pay overdraft fees etc. for checks that I had written thinking the money was in there. The second time they took money out of my account and there was nothing in there to begin with. It took me a while to dig out of that one. I asked the bank how they would allow them to take several hundred dollars out of an account with no money in it and without my consent and then charge me fees for being overdrawn. They said it`s the government,they can do anything!
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Old 12-18-2009, 06:13 PM
 
Location: Texas
475 posts, read 1,580,948 times
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you guys living off the gov teat, complaining about taxes
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