Bonnie's Tax Service

There is alot of misconceptions that if you are unemployed that you do ot have to file taxes. According to Uncle Sam, you may have to. If you were unemployed in 2008, we have some FAQ's that may help.

Do I still have to pay tax if I was out of work in 2008?

Chances are you will have too, especially if you made over $8,950 (if you're single and under 65 years old), or made at least $400 if you're self employed. If your expecting a return, then it will be a good idea to file. You never know. You may think you have to pay in is the reason not to file but you may be suprised.

Do I have to pay tax on my unemployment checks?

Unfortunally, yes. And it may be taxable on your state income tax as well. The government is not going to habd out freebies. The best thing to do is when you sign up for unemployment is that you go ahead and opt to have taxes taken out. This will reduce the chances of paying in at the end of the tax year.

What if I did some odd jobs?

If you picked up odd jobs while unemployed, you're subject to income tax and self-employment tax on that income. To report that, taxpayers must include a Schedule C with their income tax return, which details the income and expenses for the year. If you continued some work for your old employer or freelanced for someone else, and made more than $600, you will be issued a 1099 and must include that in your income tax return as well. (If you made less than $600, then you will not be issued a 1099 but are still responsible for reporting anything you made as taxable income.)

What if I had to relocate for a job?

You may be entitled to some deductions, but the catch is that you have to move further than 50 miles. Bonnie can explain this better to you.

What if I spent a lot of money on job searches?

When you are job hunting, it is alwyas a good idea to keep track of everything. I know it may be a pain, but the government does allow deductions for job hunting and Bonnie can tell you what can and can't be used.