Unemployment and taxes

[Daesania]

I tried doing some searching online, but unfortunately most of this tax stuff went over my head, so I thought maybe I'd ask for some help here.

My husband and I are goin through a divorce but we were thinking of filing jointly this year to receive a greater return (I got SCREWED last year.. filing married but single really screws you over). He said he might owe this year as he was on unemployment for awhile. I've never been unemployed or on unemployment, so i was just curious if anyone has and how did it affect your taxes? I think he was only on it for a few months.

We're just trying to figure out if its worthwhile to file jointly or back to single. Last year when I filed single, I had put in 2300 in taxes, only got back 97. /grumble.

[luminary pants]

I just got done studying for the last 10 hours about macroeconics, taxes and unemployment rates. I hate all of those words now.
I have no idea how to help you. I just hate seeing those words.

[FallenAce]

File jointly and your return will be better. The break you get for being married is greater than 2 combined single breaks. Plus, if he owes because you file separately, you're going to feel like a jerk and later it can become an issue because either one of you can overturn it within 3 years.

Last year my wife and I split. We filed out taxes singly and she broke even (after she claimed every one of our joint exemptions) and I owed $1500 (because I could claim 0 exemptions). We refiled jointly and got about $1700. Of course, she took it all, claiming I "owe" her alimony (I don't), but that's still better than owing/breaking even.

Being on these boards and going through a divorce, I assume you're more like me than we are like our ex-spouses, which means you're probably a good person and you don't actively want something bad to happen to your ex-spouse, unlike how your ex-spouse curses you. If this is the case, I'd suggest filing jointly to maximize your return and take care of the other person.

File jointly and agree to split the return.

Good luck! :)

[Quastor]

Don't get tax advice from a forum! If you're really concerned seek the help of a CPA.

/Has an accounting degree and studied individual tax, but never took the CPA exam.

[Daesania]

Don't get tax advice from a forum! If you're really concerned seek the help of a CPA.

/Has an accounting degree and studied individual tax, but never took the CPA exam.

I wasnt asking for tax advice thank you, i was merely asking if anyone has happened to file taxes with unemployment. Wow people never read.

Ace as to your comment, I am only doing this for me, if in the end it turns out that it would not be beneficial to me, then I'm not doing it, and even he said the same thing. I have no reason to help him out in any way, but I know he could also use the money as him and his girlfriend have a kid due in 2 months, so I figured hey, I could use the extra money and so could he, if it works out that way that is. I only offered to do it if I was the one filing though as last time we filed jointly, he "didnt know when the money was coming" and all 1500 of it got gambled away before I even saw the bank deposit.

[Huskie]

I wasnt asking for tax advice thank you, i was merely asking if anyone has happened to file taxes with unemployment. Wow people never read.


I collected unemployment during one tax year and had to claim the benefits on my taxes.

Was that the question?

[Daesania]

I was just asking how bad did it screw your taxes over? Did it cause you to have to owe that year?

[Huskie]

I'm sorry. I can't remember that far back. I'm old, remember? :D

But I would have to think it's different for everyone in that it depends on a few things like length of unemployment (for the total untaxed $), how much you made before hand to add to taxable income, dependants, etc.

Do you have last years tax book? Can you add up your total and check the simple charts? You might get lucky and come in on a lower tax bracket.

[Eastwood]

Sorry D, but I have a quick tax question... I was a private contractor for last year and I sent my check for what I owed before April 15th, but I got the docs in the mail just last month. Will I be penalized?

[Quastor]

Sorry D, but I have a quick tax question... I was a private contractor for last year and I sent my check for what I owed before April 15th, but I got the docs in the mail just last month. Will I be penalized?

Did you file for an extension?

[Quastor]

Depending on where the unemployment compensation came from will be key to knowing if this will affect you or not.

If the compensation came from the past employer, they more than likely will have withheld the proper tax that shouldn't "screw you," as you so put it. This income and the tax withheld should appear on the W-2 the company sends at the end of the year, and has to be included as income on the 1040.

If the compensation is from the government, he'll receive a form 1099-G at the end of the year detailing the amount of unemployment collected. This would have to be declared on the 1040 as well. Taxes will only be withheld from unemployment distributions if a W-4V to authorize this. So if he did not submit this form and has been on unemployment for quite a few month, yes, there's a good chance you'll be "screwed."

Source in case you want to read more. (http://www.irs.gov/individuals/employees/article/0,,id=130505,00.html)

[Daesania]

No tax booklet, huskie, did mine online last year. Oh well, i suppose we will just wait it out and see, but I would think we are going to be ok, i think he was only on unemployment for 4 months, so considering he's had a job longer than that, they should offset eachother, I'd think.

[Daesania]

Depending on where the unemployment compensation came from will be key to knowing if this will affect you or not.

If the compensation came from the past employer, they more than likely will have withheld the proper tax that shouldn't "screw you," as you so put it. This income and the tax withheld should appear on the W-2 the company sends at the end of the year, and has to be included as income on the 1040.

If the compensation is from the government, he'll receive a form 1099-G at the end of the year detailing the amount of unemployment collected. This would have to be declared on the 1040 as well. Taxes will only be withheld from unemployment distributions if a W-4V to authorize this. So if he did not submit this form and has been on unemployment for quite a few month, yes, there's a good chance you'll be "screwed."

Source in case you want to read more. (http://www.irs.gov/individuals/employees/article/0,,id=130505,00.html)

I will have to find out the source, but I only know the circumstances of the unemployment draw was due to being laid off. Thanks for the help.

[Eastwood]

Did you file for an extension?

YEs, but the extension only covered until the 15th of october. I was a 1099er.

[Quastor]

No tax booklet, huskie, did mine online last year. Oh well, i suppose we will just wait it out and see, but I would think we are going to be ok, i think he was only on unemployment for 4 months, so considering he's had a job longer than that, they should offset eachother, I'd think.

Certainly depends on how much he was originally withholding, but I would generally agree that 4 months should not be too bad. Of course, it'll be worse for him if he has to file Single rather than Married.

[Daesania]

Certainly depends on how much he was originally withholding, but I would generally agree that 4 months should not be too bad. Of course, it'll be worse for him if he has to file Single rather than Married.

Yeah. I think we'll just wait and see what the outcome is unfortunately. I cant believe how horrific it was to file single but married.. i mean $750+15%.. OUCH. 2200 in taxes.. i barely broke even with a +97 bucks.

[Quastor]

YEs, but the extension only covered until the 15th of october. I was a 1099er.

Well, if I remember correctly, you will be hit with a fine for filing late.

However, the amount of the fine all depends on if the amount you sent in was enough to cover what you actually owed. The majority of the fine amount for filing late is determined by how much you owe but haven't paid and how late it is (aka interest). If you sent in the check, and it covered what you owe, the fine shouldn't be too bad. I can't remember the exact amount, but it shouldn't be anything that would break the bank (unless the bank is already broke).