Taxpayers who got unemployment benefits in the year 2009 can avail of the special tax benefit when they file for their tax returns for 2009. The IRS wants to let you know about the important facts of your unemployment benefits. First, unemployment compensation or insurance in general includes any amount you received under the laws of the United States or your specific state. This includes unemployment insurance benefits, benefits paid to you by the state or railroad unemployment compensation.

Typically, unemployment benefits are taxable, but under the Recovery Act, each person who receives benefits in the year 2009 is qualified to exclude the first $2,400 of the benefits when filing for their tax returns. For married couples, if both the spouse received unemployment benefits then each is qualified to exclude the $2,400 of the benefits on their tax returns.

Take note that you should receive a form 1099-G or certain government payments that reflect the total unemployment compensation that was paid to you in the year 2009 in the first box or in box one. Deduct the $2,400 from the amount in box 1 to determine how much of the unemployment compensation is taxable and reported to your returns. It would be better to check out the IRS if you want further details about this unemployment insurance tax benefit for the year 2009.

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