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