Unpaid unemployment benefit taxes for 2011
July 25, 2011 6:09 AM Subscribe
I didn't pay taxes (federal or state) on my unemployment benefits from January to June of this year. I also won't have any income besides that starting in July. How can I figure out if/how much I'll owe?
Last year I had a similar situation where I didn't pay taxes on six months of benefits. I owed $800. However, I received an entire year of unemployment for 2010, versus half a year for 2011. I'm trying to A) figure out if I'll owe as much (or anything at all) since my reported income is half and B) if I can start making payments towards it now versus paying out one lump sum once I file in March.
I've called IRS and the wait time is insane, so I figured someone might have a little insight for me before I speak with them.
TIA!
Last year I had a similar situation where I didn't pay taxes on six months of benefits. I owed $800. However, I received an entire year of unemployment for 2010, versus half a year for 2011. I'm trying to A) figure out if I'll owe as much (or anything at all) since my reported income is half and B) if I can start making payments towards it now versus paying out one lump sum once I file in March.
I've called IRS and the wait time is insane, so I figured someone might have a little insight for me before I speak with them.
TIA!
Yes, you absolutely can start making payments if you think you will need to. They are called estimated payments. You can use this form from the IRS:.
If your taxes are simple- for instance if you are single and don't own a home and have no investments, you could download a 1040EZ and look at last year's tax table to estimate what your taxes will be. It is not going to be completely accurate, but will give you an idea.
posted by Lesliekc at 6:42 AM on July 25, 2011
If your taxes are simple- for instance if you are single and don't own a home and have no investments, you could download a 1040EZ and look at last year's tax table to estimate what your taxes will be. It is not going to be completely accurate, but will give you an idea.
posted by Lesliekc at 6:42 AM on July 25, 2011
A single person's standard deduction is $5800 in 2011 and the personal exemption is $3700. So, if you made less than $9500 in 2011, you will not owe any Federal income tax.
State taxes will vary, but most will not charge you any income tax at that level of income, either.
posted by kindall at 6:43 AM on July 25, 2011
State taxes will vary, but most will not charge you any income tax at that level of income, either.
posted by kindall at 6:43 AM on July 25, 2011
As far as I know you won't owe STATE taxes on unemployment income.
posted by misanthropicsarah at 12:22 PM on July 25, 2011
posted by misanthropicsarah at 12:22 PM on July 25, 2011
>As far as I know you won't owe STATE taxes on unemployment income.
Not necessarily true. In my home state, for example, "unemployment benefits are taxable for both state and federal income taxes."
posted by virago at 1:58 PM on July 25, 2011
Not necessarily true. In my home state, for example, "unemployment benefits are taxable for both state and federal income taxes."
posted by virago at 1:58 PM on July 25, 2011
P.S. For more guidance, I would check out the website of your state's Department of Labor and/or Department of Taxation (or whatever it's called).
posted by virago at 5:07 PM on July 25, 2011
posted by virago at 5:07 PM on July 25, 2011
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posted by mkb at 6:41 AM on July 25, 2011