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Can unemployment benefits be used towards earned income credit?
Wiki User
∙ 13y ago
no not in ny . unless you have worked atleast 6 months prior
Wiki User
∙ 13y ago
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You only received unemployment for 2009 will you be eligible for earned income credit?
Unemployment benefits are not "earned income", so you should not be eligible for earned income credit.
When drawing Social Security does unemployment benefits count towards the amount you can make?
No. What counts is what you earned, and that does not include government benefit programs, which is what unemployment compensation is. See Related Link below.
Can claiming a life insurance policy affect unemployment benefits?
Generall not since unemployment benefits are related to earned income from losing a job.
Is unemployment compensation earned income when receiving social security benefits?
no
If you are collecting nys unemployment benefits try a job for one day and find its not a good fit can you continue to collect?
You will need to report the income earned to the unemployment bureau. They will likely reduce your benefits by that amount. So, if you earned $100 your unemployment check for that week will be $100 less. Failure to report the income can result in criminal prosecution for fraud.
Is unemployment checks considered income?
Yes it is taxable income that has to be reported as such on your 1040 income tax return. For the tax year 2009 the first 2400 of unemployment compensation received will not be taxable income that would have to be added to all of your other gross worldwide income and taxed at your marginal tax rate.
Will Social Security go down if you were on unemployment?
Not if you are already receiving Social Security. If you are still in your earning years, your ultimate benefits my reduce as they take the average of your last 40 quarters of earned income (which does not include unemployment benefits) to determine the benefits you receive.
Can you get unemployment benefits if you get a job and are in trial period?
Your unemployment benefits usually stop as soon as you have earned (but not necessarily been paid for) work. If the job did not pan out, you can re-open your original claim. as long as you are in your base and benefit periods.
Does unemployment compensation wages affect earned income credit on your taxes?
Yes, it can. However, it cannot help you, only hurt you. First of all, for 2009, 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. After you max out the credit, it starts to phase out as your income increases. The income amount used here the greater of your earned income or your AGI. Therefore, if your AGI is made up only of earned income and unemployment compensation, your EIC will be reduced because of your unemployment compensation. There are many other items than can increase or decrease your AGI, including interest income, IRA contributions or withdrawals, student loan interest, and many more. So you could potentially offset the unemployment compensation with other deductions from AGI, such as contributing to an IRA. (Of course, you probably don't have the cash for that if you're collecting unemployment.) Here is a link to the EIC figures for 2009 (at the bottom of the page): http://www.irs.gov/individuals/article/0,,id=150513,00.html ***** Unemployment does NOT count towards your EIC because it is not EARNED. Your UC is applicable to federal taxes only. The IRS EIC calculator takes UC into consideration although it is not correct.
Does Social Security benefits include unemployment?
Unemployment is income taxable, but does not count for Social Security purposes.No, only earned income (while working) counts toward SS benefits.
Is it true that Unemployment compensation benefits received are taxable to the person that receives them?
Yes - because it's classed as 'un-earned income'.
Are unemployment benefits based on gross pay?
Each state has its own protocol for determining eligibility. They generally include total wages earned (gross), time employed in the base period, reason for the unemployment, etc.
