| 2010 Income Tax returns for the unemployed are | | | | The way it works is that the person will get a |
| tricky. There are a lot of factors to be considered and | | | | statement informing him of the amount of |
| people who are unemployed have a lot of questions, | | | | unemployment and taxes withheld, and the person will |
| like how much of their salary is taxable or not, what | | | | enter those amounts on the corresponding 1040 return. |
| tax deductions can they claim or not. | | | | Basically Unemployment department sends out a |
| Here are few answers to some of these 2010 tax | | | | 1099G that contains the necessary information to fill |
| return related questions - | | | | the returns. They have until Feb 1 to mail the form. |
| 1. Are the unemployment Tax benefits received | | | | Remember, some states have a dedicated phone |
| Taxable? | | | | number available so that anyone can verify if the |
| This is the 1st and foremost question that most of the | | | | information provided in the form is correct or not. |
| people ask. The answer to that is sadly Yes. and since | | | | 3. Is there any part of 2010 Unemployment benefits |
| there were no witholdings on it and if people normally | | | | that are non-taxble and are exempt? |
| receive a refund, they will get much less back, or | | | | Yes, there is. Thats the good news. The first $2400 |
| possibly owe. The reason being that the benefits you | | | | that a person receives as part of unemployment |
| received while on unemployment will be added to your | | | | benefits are exempt and can be deducted from the |
| income and be taxable on your federal return. | | | | tax returns. However, the rest of the unemployment |
| 2. When will someone get the information to filing 2010 | | | | benefits are. |
| returns? | | | | |