RobertT
Senior Member
Registered: 04/18/07
Posts: 623
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Reply with quote | #1 |
I was wondering this and maybe some of those here could give me a few answers I have been wondering about.
Q: If a person has been on unemployment benefits for 84 weeks, that is 70 weeks plus another 14 weeks, how does one go about paying it back when it comes to tax times?
I ask this because the extended weeks will place people around the time income tax returns about due to be processed.
Back in the day, when a person collected unemployment they had to pay a portion back to the IRS as it was deducted from your total return.
So how is it going to be when lets say a person has been out of work for 84 weeks, not recieved a full paycheck to generate a tax return are they going to pay back unemployment??? There is only 54 weeks in a year?
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nhman
Senior Member
Registered: 05/03/05
Posts: 748
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platypus_dude2008
Senior Member
Registered: 09/13/08
Posts: 1,724
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Reply with quote | #3 |
I don't think you pay it back directly. However, unemployment benefits are subject to federal income tax.
In the old days, pre-Obama, the majority of unemployment benefits came from an insurance pool that was funded by employers. Today, it works the same except some of the funding is coming from the federal government.
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NHLady
Senior Member
Registered: 08/25/08
Posts: 1,650
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Reply with quote | #4 |
Here's how unemployment works
Employers pay into the unemployment fund. Each business contributes based on the number of people they have laid off. The fewer people you lay off the lower your contribution. Employees pay ZERO into the unemployment fund and each state has its own fund that is subsdized by the feds in times of high unemployment.
When you collect unemployment checks you hae two options. Have the income taxes deducted from each check or pay the taxes when you file your income tax return.
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platypus_dude2008
Senior Member
Registered: 09/13/08
Posts: 1,724
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Reply with quote | #5 |
Thanks NHL.
The way Obama is hurting our economy, I suspect unemployment payments will be needed for years to come.
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