Tax tips: Unemployment compensation

If you haven't filed your taxes and you're one of the millions of Americans who received unemployment benefits in 2010, this tax tip is for you.

With the unemployment rate hovering just below 10 percent throughout 2010, millions of Americans collected unemployment benefits. Those out of work were eligible for up to 99 weeks of benefits.

When you register for benefits, no taxes are withheld from your unemployment check unless you request the taxes be taken out on your behalf. If you asked for the taxes to be withheld, you likely avoided an undue tax burden because you must declare unemployment income on your taxes.
So if you received the full amount of the benefit each week, the total tax bill comes due when you file. That could be a sizable and difficult debt to pay, depending on the amount of the benefit and the length of time you received it.You can save money by deducting the costs of resume preparation, job counseling and employment agencies. The cost of travel to and from interviews may also qualify for deduction if the trip was primarily for a job search.

cablab wrote:BTW ty JIMAINE