How to File Taxes After Receiving Unemployment

Video Transcript

"My name is Penny Tokash. I'm an Enrolled Agent. My company is Tax Facts Incorporated. It's located in Jonesboro, Georgia. I want to talk to you today about collecting unemployment insurance. A lot of people have had a hard time this year and are now collecting unemployment insurance. In most cases it's going to be fully taxable. The stimulus plan winning to effect in February of '09 is going to allow you to exempt out $2400 of your unemployment benefits and not pay tax on it. The rest of it will be taxable. Not all states are following this. So you need to double check with your state to see if number one, employment benefits are taxable in your state; number two, if they are taxed; if they're; if they are taxable, is there an exemption. As of now in Georgia there is not; the tax unemployment insurance benefits are going to be taxable without an exemption. The law in Georgia is that any federal tax laws enacted after January 1st of the year are not available to the taxpayer until the following year. The legislature can change that; so we are looking for a change. But double check with your state to see if that changes in effect for your state."