Posts Tagged ‘COBRA’

Finances: Extended Unemployment Benefits In Jeopardy

February 28th, 2010

By Jackie Simmonds, NEJS Blog Editor

The Senate failed to push back the Feb. 28 deadline to apply for extended unemployment benefits last week. This means that beginning today, Sunday February 28, the unemployed will stop getting extended benefits as their current extension benefits expire. This will impact 1.2 million workers in March.

Beginning on Monday, March 1 the jobless will no longer be able to apply for federal unemployment benefits or the COBRA health insurance subsidy. Federal unemployment benefits were available after the basic state-funded 26 weeks of coverage expire. Congress had approved up to an additional 73 weeks, which are divided into tiers, and the jobless must apply each time they move into a new tier.

In an economy that is expected to sustain the just under 10% unemployment rate for all of 2010 this is bad news to people who are counting on those benefits to keep their lives glued together as they search for work. The White House Council of Economic Advisers predicts that the unemployment rate won’t fall back to its 2008 level of 5.8% for another seven years. To the job seeker this means their long and hard search for employment isn’t about to end any time soon.

What happened to the extension? Lawmakers repeatedly tried to approve a 30-day extension this week, but each time, Sen. Jim Bunning, R-Ky., prevented the $10 billion measure from passing, saying it needs to be paid for first. Senate Democrats plan to introduce legislation next week that pushes back the deadline as much as a year, an aide said. The House approved a bill in December that extended the deadline to the end of June. Until the job extension is approved the people impacted will loose their benefits, once the measure is approved, the jobless would be able to reapply for federal benefits, though they would not receive missed payments. Interrupted payments will create financial hardships for individuals who are already stretched thin by the length of time it is taking to find work.

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Posted in Finances and insurance

Tags: Carl Huse COBRA COBRA subsidy extended unemployment benefits federal unemployment benefits Jackie Simmonds Jacqueline Simmonds Tami Luhy unemployment extension

Finances: Tax Tips to Maximize Your Refund This Year

February 18th, 2010

If you are unemployed or were unemployed in 2009, you want to make sure not to miss out on many deductions and exemptions available this year. To help you navigate this year’s returns, Andrew Kucheriavy has put together a checklist of things that you should keep in mind as you prepare your return. Here are some highlights from his article:

2009 Stimulus Package for Unemployed

The 2009 bill signed by President Obama makes the first $2,400 of unemployment income nontaxable.

Deductions for Spending Money on Job Searching

If you were job hunting in 2009, you may be able to deduct many of the expenses incurred while looking for a job. Anything you spend on creating, printing and mailing your resume is deductible and so are the fees for resume writing services, career coaches or headhunters. You may also write off phone charges associated with your job search, as well as transportation costs: miles driven to an interview (including parking and tolls) or plane, bus or train fare, for example.

Claiming Your Unemployed Spouse on Your Return

If your spouse has lost their job, you can claim them as your dependent to get a tax credit. If you have been paying for their living costs, you qualify to receive a tax credit.

Expanded Earned Income Tax Credit

Many couples who file jointly and have children qualify for the expanded Earned Income Credit. The credit increases for families with three or more children to 45 percent (5% increase) of the first $12,570 of earned income.

Health Insurance Assistance for Unemployed

Lowered cost for COBRA health insurance is a valuable benefit for workers who lost their health insurance when they lost their jobs. This government subsidy is designed to help unemployed people keep their health insurance.

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Posted in Finances and insurance

Tags: 2009 Stimulus Package Andrew Kucheriavy Capital Gains Tax COBRA COBRA subsidy Deductions Earned Income Tax Credit Making Work Pay Credit minimizing taxes tax credits tax prepraration taxes

Insurance: What Are Your Options After COBRA Runs Out?

February 1st, 2010

By Bethany North

COBRA is a popular option for temporary health coverage at group rates. However, many individuals in the workforce today run into problems because it is only available under specific circumstances. Often times, this COBRA coverage can be more expensive than health coverage through your employer, especially if your employer is paying a portion of the premium. However, COBRA is generally less expensive than paying for your own individual health coverage.

What many workers are facing in the job force today is standing at a crossroads when their COBRA runs out. If that sounds like you, there are a few options available to you to find continual health coverage at an affordable price.

Start out by keeping your COBRA until you have other health coverage readily available to you. It’s not a good idea to have a lapse in your coverage because that could cause potential problems.

From there, look to your state for insurance programs that are income based. If you cannot afford individual health care, then this may be the best option available to you. Medicaid is a great choice if you have children and are below a certain income bracket. If you are also currently unemployed, then this could be your best choice for health care.

Consider individual insurance. There are many different options in individual insurance after COBRA runs out, but it is important to comparison shop to make sure that you are getting the very best deal possible. Examine all of the packages that are offered to you closely to determine what the deductibles, co-pays, and total cost may be. You don’t want to sign up for anything with hidden charges, causing you to pay more in the long run.

Work with a licensed insurance agent. This is someone who will know the market well, and they will also be able to answer all of your health care questions for you. Often times, they can work with you directly based on your income to make sure that your needs are met in the plan that you select.