This is the sixth of 7 tips on tax preparation from Tony. Check back each Tuesday to read them all.
Tip Number Six: Understanding Unemployment Benefits • American Recovery and Reinvestment Act (ARRA) provides a tax break if you collected unemployment in 2009. • Except for workers compensation, unemployment compensation includes amounts received through federal or state unemployment compensation laws, state unemployment insurance benefits, railroad unemployment compensation benefits and benefits paid by a state or the District of Columbia from the Federal Unemployment Trust Fund. • Unemployment benefits are usually taxable; however, under ARRA, persons who received unemployment benefits in 2009 can exclude the first $2,400 of benefits on their federal tax return. • If each spouse of a married coupe received unemployment compensation both can exclude $2,400. • Form 1099-G shows the total unemployment compensation paid to you in 2009 in box 1.
Tony Navarro, UCLA, B.A, Economics, 1990: Investment Consultant since 1992; Tax Preparation since 1996 tax year; IRS Audit Representation; IRS-designated Enrolled Agent; Investment Advisor LPL; Notary Public; Bookkeeping Services. 12803 Venice Boulevard • Mar Vista, CA 90066 (310) 398-3231 • tony@taxplusla.com http://www.taxplusla.com
Tags: income tax prep, IRS
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