Laid off--Support thread

[disneymarie]

Whoopy!
Why the heck am I paying income tax on money I don't earn anyway


Temporary Suspension of Taxation of Unemployment Benefits
There will be no federal income tax on the first $2,400 in unemployment benefits received by an individual in 2009.

 

[debraW76]

The bad news is my DH got laid off yesterday.

The good news is I have another thread I can subscribe to. I now feel like I am 'part of the club'. (sorry I am an optimist so I have to find something good in this).

 

[geffric]

. Are you guys finding it difficult to even land an interview?

yep lots of phone interviews but little face to face interviews..

 

[Mickdeb]

You file in the state you worked in. I live in VA, but I'm collecting my unemployment from DC. Which is good since DC has a slighter higher benefit than DC. It's still only 359/wk and this is the max for DC.

Thanks so much. So if needed, we will file in MA, which appears to offer a higher benefit than NH.

Thanks to all who responded, glad to know about the 65%cobra payment, that is definitely important to us.

to all.

 

[mafibisha]

Temporary Suspension of Taxation of Unemployment Benefits
There will be no federal income tax on the first $2,400 in unemployment benefits received by an individual in 2009.

Can you tell me where you saw this? Three people in my close, extended family are laid off and this is always being discussed.

Also, just heard 2 of 3 are being taxed on their severance, too.

 

[Mrs.Reese]

It will apply to the 2009 tax return not this year's tax return. The IRS considers all income even when unemployed to be taxable.

 

[CarolA]

Your severance payment is taxable and if they don't tax it try not to spend it all because..... if you get a job it's going to bite you.

Unemployment is taxable because the "insurance fund" is paying you to look for a job, it's paid from the insurance premiums paid by your employer over the years (in theory) Generally you can elect to have taxes withheld or not. I felt that I would get a job fairly quickly and did elect to have the taxes withheld. If you elect NOT to have them withheld make sure you are not going to wind up owing too much next April 15th!

 

[NYDisGuy]

I've been collecting since September and the job market in NY is glutted with applicants. I am still on my original claim, but with the extension, I hope to make it through. It is tough to find a job that would pay for daycare and expenses. I am thinking of working the opposite shift as my DH to avoid daycare.

Has anyone heard about any incentives to go back to college. I would love to finish my BA, but need financial assistance. Then, what to get a degree in? HR maybe?

Recent college grads are getting slammed, it would probably make your situation worse unless your going to use it to get a high school degree job, but then you have to worry about paying your loans back.

 

[fairykin]

i hope that you all, along with my only brother, find a job.
it is so sad and hard, prayers and hope left for everyone.

 

[reservations4five]

I am hopping on the band wagon too- Lord knows I need some support.

My DH has been laid off since Nov. no end in sight. Little to no interviews. There are NO jobs here in our area. It is becoming like a ghost town.

My thoughts and prayers are with us all right now. It is hard.

 

[disneymarie]

Can you tell me where you saw this? Three people in my close, extended family are laid off and this is always being discussed.

Also, just heard 2 of 3 are being taxed on their severance, too.

I will have to look, I think it is under the new plan someplace on the PA website. it was titled how Individules benefit from the new plan.

The income tax for next year will not tax the first $2,500 is what I understood. So no help until next year. But why in the world are UC taxed at all, it is unearned income?
Gosh when is the turn around. will we be living in the 1978 motor home on the lot I own if we lose the house? It is almost paid off....
Di

 

[reservations4five]

We are in quite a prediciment too, with our home.

We are/were purchasing our home on land contract. Signed the papers 2 weeks before DH was laid off.

I am now trying to decide if we should down size to a smaller home before we have to get a mortgage. I would rather go back to renting I believe.

There is no way possible we can make the mortgage payments with him not working.

 

[golfgirl3613]

I am seriously contemplating bankruptcy. I am going on 6 months of unemployment and while I enjoy time with my DD's, the lack of income is overwhelming, stressful and sucking the life out of me. I can't find employment that is higher than my current unemployment, and once that runs out, how do I pay for daycare to work? If I file bankruptcy, at least if I get a job soon, the black hole I am currently in will be escapable! Sorry had to vent, so frustrated!

 

[wall*e2008]

We are in quite a prediciment too, with our home.

We are/were purchasing our home on land contract. Signed the papers 2 weeks before DH was laid off.

I am now trying to decide if we should down size to a smaller home before we have to get a mortgage. I would rather go back to renting I believe.

There is no way possible we can make the mortgage payments with him not working.

I am confused. When did your DH become unemployed? Have you actually purchased the home on land?

 

[Kathi OD]

My DH was laid off in mid December, and has only had a few interviews. No luck as of yet. Are you guys finding it difficult to even land an interview?

Yes. DH has been out of work since last June. He is a construction project manager. He has had interviews, but not many. There really isn't much out there. He has even applied to stores for ANY kind of work, part-time or full-time, all without a nibble.

The last interview he had was the last week in January. A firm called at 9AM and wanted to know if he could come in for the interview at 1PM that day, in an ice storm. Of course he went. Supposedly they were interviewing DH and one other person for the available position. Neither person was hired as the company wasn't awarded the project.

What's frustrating for DH is that when he does respond to job postings, he isn't sure if the company already has the work on the books or is just interviewing hoping they'll get some of the jobs they've bid.

We're hoping with the new school construction projects that should be starting in NJ soon he'll be able to find something before his unemployment runs out. At this time, he's eligible for 59 weeks due to extensions. We have had to watch our finances very carefully, especially during January & February when I was on disability after an unexpected surgery.

So far we've been able to meet all our financial obligations without dipping too much into our savings. If he doesn't find a new job before the unemployment runs out, we'll have some serious & painful decisions to make.

Also, just heard 2 of 3 are being taxed on their severance, too.

DH was taxed on his severence pay when he was laid off. It's considered income by the IRS. Better to pay it upfront than have to pay it in April when you might not have it.

 

[Kellydelly]

I've been collecting since September and the job market in NY is glutted with applicants. I am still on my original claim, but with the extension, I hope to make it through. It is tough to find a job that would pay for daycare and expenses. I am thinking of working the opposite shift as my DH to avoid daycare.

Has anyone heard about any incentives to go back to college. I would love to finish my BA, but need financial assistance. Then, what to get a degree in? HR maybe?

I wouldn't get a degree in HR. One of my best friends just finished her HR degree and she is making $15 an hour at an entry level HR job.

 

[DebMcDonald]

I just found this thread and boy do I need it. My DH got laid off in February, so we're just at the one month point, but when I see everyone months and months into it - it scares me more. My DH has had a couple of phone interviews but we never get called back after that I think his salary scares people away, he says he negotiable, but that seems to get him nowhere. Instead of doing the cobra with the governments help, I'm going back to work at a hospital I was at 5 years ago, we'll have great insurance and my husband will be home to get our kids back and forth to school. I was doing daycare, but at least me being at the hospital is a steady dependable paycheck.

 

[reservations4five]

I am confused. When did your DH become unemployed? Have you actually purchased the home on land?

He has been laid off since Nov- we have decided not to us the purchase option with our home, just to continue as renters. At least until we see if things get any better.

 

[wall*e2008]

He has been laid off since Nov- we have decided not to us the purchase option with our home, just to continue as renters. At least until we see if things get any better.

That makes sense. I thought you bought another home and I was confused.

 

[southcarolinagirl]

I just found this thread, been lurking on the budget board for quite some time. I have been laid off since first part of January (office of a construction company). I just wanted to say thanks to the person who started this thread, it is comforting to know I am not alone. I was just wondering if anyone had received the increase that was supposed to come from the stimulus package? Still haven't seen it here in SC...