Posts Tagged ‘Earned Income Tax Credit’

Finances: How the unemployed can prepare for the tax season and avoid incurring debt

December 30th, 2011

By Marlon

When you’re unemployed or you lost your job or suffered a big drop in the income level, you may have a considerably different tax situation from the previous years. Rarely does anyone greet the tax season with a big smile on their face and with a bottle of champagne! More often the arrival of your W2 statement in your mail box causes a sigh. Now, is it possible to erase the pain of filing your taxes? No, it isn’t but there are certainly ways in which the unemployed and the job seekers can end up paying lesser amount to Uncle Sam. Not being able to pay your taxes may land you up in IRS tax debt, for which you may have to rush to the IRS or hire a tax debt consultant to become debt free. But what will happen to you if you’re unemployed? Where will the funds come from?

When you’re financially struggling, you may have forced yourself to withdraw money from the Individual Retirement Account (IRA) or maybe you started working out of home. All these instances may have tax implications later on. Taxes are certainly the last thing that may come to your mind when you’re unemployed but remaining oblivious of the situations when you may incur more taxes can push you towards further mess. Check out some such major items so that you can stay educated and effortlessly avoid falling into debt. » Read more: Finances: How the unemployed can prepare for the tax season and avoid incurring debt

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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.

» Read more: Finances: Tax Tips to Maximize Your Refund This Year

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