as with a lot of other people in the united states has been out of work.
Yes i look constantly every day..
and now have a job finally after 8 month's of looking.
Did you know you have to pay tax's on you unemployment?
No big deal right?
UHHH..i have been out of work for 8 month's....Most are in this same boat.
Most lower income family's get Earned Income credit.
let's say i will use myself as a example.
I have 3 kid's.
all deduction's. for the EIC.
Our soul income was my unemployment benefit's till i found another job.
HERE is where they put the whammy to the poor.
i had over 17 thousand dollars earned.
6 thousand of that was from Unemployment.
Well little to be known they passed a federal law....
All unemployment benefit's over 2400 dollar's... would automatically get deducted from you EIC...
which made me end up owing money.
the first $2,400 of unemployment compensation is not taxable, so it doesn't affect your taxes in any way. Above $2,400, it is taxable and
increases your AGI (adjusted gross income). The earned income credit (EIC) phases in at 40% of earned income until it reaches the maximum credit. (See
the IRS link below for specific amounts.) Unemployment compensation does not count as earned income, so it does not increase your credit. Read more:
So basically you are double taxed here folk's.
They make you pay tax's as if the Unemployment is INCOME...
But it DOESN'T COUNT AS INCOME toward the EIC.
And on top of that it's eat's you EIC return up.
So the poor stay poorer.
Btw i went and did tax's today,
My sister with 3 kid's who worked at restaurant..made 6 thousand dollar's total for the year..
got back 7 thousand dollar's...
I made 17 grand 6 grand was unemployment..rest self employment.
and i owe money now.
all because of these new law's.
They should not be allowed to tax it as income.
Then tax away tax dollar's on top of it.
That is double taxation.
At least how i see it.