Unemployment Tax Question

babyharley

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I got my Unemployment crap in the mail today (
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I have to let them know if I want Income Tax Withheld - now, whats the difference if I do, or don't? If I want Federal Income Tax Withheld, its at 10% rate, or if I want both Federal & MN Income Tax, its a combined rate @ 15%.

Then there's an option for not having either withheld from my checks.

What's the difference if I do, or don't withold? I'm so confused
 

squirtle

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If you don't have them take it out now, you will owe them when you file your taxes next year.
 
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babyharley

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So, would it be better to withold them? I really can't afford to have anymore taken out than I'm already getting. I hate this with a passion.
 

gingersmom

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I have always paid the taxes back later after getting a job. It caused me to owe under $200 to the state once, but it was worth it to me to get every penny I could while I was unemployed. And I never wound up owing anything to the Feds as a result.

It's up to you - do your budget and see if you can afford to have the withholding taken out right away, or if it makes more sense to just take everything now and worry about taxes later.
 
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babyharley

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Originally Posted by GingersMom

I have always paid the taxes back later after getting a job. It caused me to owe under $200 to the state once, but it was worth it to me to get every penny I could while I was unemployed. And I never wound up owing anything to the Feds as a result.

It's up to you - do your budget and see if you can afford to have the withholding taken out right away, or if it makes more sense to just take everything now and worry about taxes later.
Thats what I was thinking - I really cannot afford to get any less than I'm already gonna get


I just didn't know how that worked really
 

gingersmom

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Originally Posted by babyharley

So, would it be better to withold them? I really can't afford to have anymore taken out than I'm already getting. I hate this with a passion.
It doesn't mean it is BETTER to have them taken out, just saves you from paying it later.

Again, I always refused taxes being taken out because I needed it ALL to survive while in job transition.

I call unemployment: unenjoyment, but really, it can totally save your butt with your bills.
 

squirtle

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Sorry, I answered a little quickly because my boss called me... For example, I closed out a simple IRA account last week. I got the option of choosing whether or not I wanted them to take the tax out. If I chose not to have them take it out, they would deduct it on their own when I file my taxes in February. I went ahead and had them take it out so that I didn't have to worry about it later.

In your case, you need all the money you can get. If you can survive without it, I would recommend having them take it out so you don't have to worry about it. It's always nice getting a big check at tax time.... But if it makes things tight for you then choose no and pay it at tax time. It doesn't necessarily mean that you won't get any refund, just that it won't be as much.
 
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babyharley

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I think I'm just gonna worry about that later. I need all I can get now, for sure.

Thank you so much guys - I was so confused... well, I still am, but @ least I understand this part.
 

squirtle

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I missed all those responses while I was typing!

OK, I think you should tell them not to deduct them and then pay them back later on when you are secure in your new job.
 
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babyharley

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I just cannot believe how much they jack with you unemployment! How the heck am I supposed to live on what I'm gonna get? This is unreal. I'm furious!!
 

squirtle

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Originally Posted by babyharley

I just cannot believe how much they jack with you unemployment! How the heck am I supposed to live on what I'm gonna get? This is unreal. I'm furious!!
I was on unemployment once and it was ridiculous

Hang in there, Kenz. You're going to find a job soon and won't have to worry about it for long
 

gingersmom

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Originally Posted by babyharley

I just cannot believe how much they jack with you unemployment! How the heck am I supposed to live on what I'm gonna get? This is unreal. I'm furious!!
Please try to look on the bright side: It is MUCH better than getting nothing at all, yes?

I've been there done that - ANYTIME you have a question about it, I'll be more than happy to answer.

Poor Kenz - it DOES stink to have to go through this!!!
 

gingersmom

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Originally Posted by icklemiss21

just make sure you keep track of what you will owe them and put it aside when you are working again so you don't worry about a big bill come tax time
I have to disagree here, as when I was on unenjoyment, there was nothing available to actually put aside. I was just thankful that my student loans were deferable.

The tax bill on unemployment is really rather small, and not something she should stress about at this point.
 
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babyharley

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Originally Posted by GingersMom

Please try to look on the bright side: It is MUCH better than getting nothing at all, yes?

I've been there done that - ANYTIME you have a question about it, I'll be more than happy to answer.

Poor Kenz - it DOES stink to have to go through this!!!
It is better than nothing, and John is actually working 2 jobs to help cover the bills. I'm lucky to have him, for sure.

Its just the fact that I'm now getting a check every 2 weeks, what I used to make in at least 2 days
What I get a month, is what I usually got every 2 weeks from work.

If I had known I was going to be in this position, I could have saved up SO much by now and wouldn't have to worry.

I really do dispise my ex boss!!
 

squirtle

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Originally Posted by GingersMom

I have to disagree here, as when I was on unenjoyment, there was nothing available to actually put aside. I was just thankful that my student loans were deferable.

The tax bill on unemployment is really rather small, and not something she should stress about at this point.
I am pretty sure she meant set it aside when she has the new job

I do think the amount will be rather small as well... but I don't want her to miss out on any tax refund when the time comes. I look forward to that time of year
 

icklemiss21

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Originally Posted by GingersMom

I have to disagree here, as when I was on unenjoyment, there was nothing available to actually put aside. I was just thankful that my student loans were deferable.

The tax bill on unemployment is really rather small, and not something she should stress about at this point.
I meant put them aside later (once she found a job) sorry should have made that more clear
 
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babyharley

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Originally Posted by squirtle

I am pretty sure she meant set it aside when she has the new job

I do think the amount will be rather small as well... but I don't want her to miss out on any tax refund when the time comes. I look forward to that time of year
I always look forward to that too, but right now I'm just looking forward to actually getting a check to pay my bills on time.
 

gingersmom

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Originally Posted by icklemiss21

I meant put them aside later (once she found a job) sorry should have made that more clear
OK, sorry, I'm really literal, LOL...
 

phenomsmom

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I agree that if you can afford to have them take it out now do. But it sounds like you can't so keep it all and save up the money so you can pay it come tax time.

Kenz. I know what you are going through. Lee is trying to get his unemployment figured out. Right now he is locked out of the system since he didn't call everyweek since Char-broil left. So now we are broke and can't really afford to pay bills and they won't give him money until he can go down there and do all that good stuff. Well now that we have one vehicle its hard for him to go down there while I ma at work. Sooooo we are waiting till he goes to get his passport and all of that and just take the back pay. Ugh!!
 
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