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H.R. 155, The Suspension of Federal Income Tax on Unemployment Benefits Act of 2009 (70 comments ↓)
H.R. 155 would amend the Internal Revenue Code of 1986 to suspend the taxation of unemployment compensation for 2 years.
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nmetro
January 16, 2009, 1:15pm (report abuse)Considering the dire state of the economy, this makes sense to give those who are unemployed tax relief during this critical time. The tax savings go back into the economy for food and other living expenses.
This bill died in the previous Congress and was to cover tax years 2008 - 2009. This bill should cover 2008 - 2010, as the economy is now shedding nearly 600,000 jobs a month and will continue to do so through most of this year.
As for those who oppose this bill. Well, when you think about the Wall Street Bailout and the Stimulus Bill combined are close to $1.7 trillion and does little to help the average American, this bill will at least provide some solace to the unemployed.
Patrick Day
January 21, 2009, 3:07am (report abuse)This makes sense, To be fair it should cover the 2008 tax year as well as the future years. If it is going to happen it needs to be moved on ASAP.
Jen
January 22, 2009, 10:55am (report abuse)This needs to cover 2008 as well. I lost my job in early 2008 and still cannot find one. I cannot afford to pay taxes this year as I am barely surviving. Please amend this bill to add 2008.
nmetro
January 22, 2009, 1:48pm (report abuse)Update. SR 155 (the Senate Version) has tax years 2008 and 2009. So, it is quite possible when the collective minds get together, that the suspension will include 2008, 2009 and 2010 tax years.
With thousands of layoffs now coming weekly; we may be seeing more help for the unemployed.
John W.
January 22, 2009, 4:01pm (report abuse)If they don't pass this bill S155 to suspend taxes on unemployment, why would they want to add $25 more on a unemployed persons WBA. Makes no sense then its not really helping, its like a give and take back.
Bill J
January 23, 2009, 12:04am (report abuse)When april of 2009 comes the only way I could pay a tax bill on my unemployment comp would be to take it from whats left of my old 401k. its already lost 35% of its value. What kind of penalties would I then encure? Its an endless cycle of destruction.
Jerry
January 27, 2009, 7:33pm (report abuse)Will this Bill be part of the Stimulas or is it on it's own?
Jimmy
January 29, 2009, 12:36pm (report abuse)I really hope this is amended to include 2008 tax year. I was layed off for 6 months and failed at selling my home, which I can no longer afford. I made almost half my income last year in unemployment compensation.
If the bill was amended to include 2008, my mortgage interest deduction is likely to be enough to return to me the money to get my house on the market this year so I can start to pull myself out of my spiral of debt.
I'd bet the suspension of this tax will help a lot more people right now than the piddly $500 credit from the stimulus.
phil
January 29, 2009, 1:56pm (report abuse)Pres. Obama,
This was a part of your promised plan on your ramp up to office. Please suspend Federal Income Tax on unemployment benefits for yrs 08/09, and we promis we will not use the money to go on expensive vacations or do any extravigant remodeling.
Jerry
January 29, 2009, 7:11pm (report abuse)Nicely said Phil, :) This is a promise he made and we should hold him to it, I'm holding off filing until we find out if this will be passed.
2008 tax on unemployment
January 30, 2009, 8:55am (report abuse)will they help unemployment taxes for 2008? It would help to live 2 more months.
Marianne Nielssen
January 30, 2009, 4:16pm (report abuse)This bill should absolutely include 2008 when the unemployment benefits really started going up. Makes no sense not to include 2008. It should also include some type of provision whereby if you must pay income tax eventually, it should be not due all at once.
nmetro
January 31, 2009, 7:18pm (report abuse)I thought I would work on my income taxes for 2008. It comes to $750 ($250 to Colorado and $500 to the Federal Government) as the result of taxing unemployment benefits. Pretty sad state of affairs when Congress and President Obama do not care about those who lost their jobs. Let's face it, 50% co-pay on COBRA (which the unemployed drop) does not help anyone. The Senate plans to exempt $2400 of 2009 and 2010 benefits (again a drop in the bucket). Both Houses plan to give an extra $25 a week (this would only increase the tax liability). If this was in affect in 2008, my tax liability would have gone up from $750 to $925. Folks, we are on your own.
nmetro
January 31, 2009, 7:24pm (report abuse)Also, I sent a not to my Senators, Congressman and President Obama. All four messages were ignored. Apparently to them $750 is a drop in the bucket, but to me it covers all my monthly expenses less my mortgage. By the way, the chances that anyone on Congress or the administration sees this is nil.
David Anderson
January 31, 2009, 7:36pm (report abuse)How about the provision taxing SS benefits?
Melanie Ennis
January 31, 2009, 11:25pm (report abuse)I think it is absolutely RIDICULOUS to tax unemployment benefits! My question is, if they change law to cover 2008 what happens to those people who have already filed their taxes and PAID income tax on their unemployment benefits. Will they receive a tax refund?
jerry
February 1, 2009, 4:37am (report abuse)Good question Melanie, that's why I'm holding off on filing until we know.
phil
February 2, 2009, 1:00pm (report abuse)Believe me, come April 15th, there will be many folks out here who will be forced to make a decision between defaulting on their Federal Income Tax from their 2008 unemployment benefits,or paying their morgages.Perhaps as a result of their belief,from reading both Obama’s AND McCain’s stimulus plans,that whoever won the election,suspension of the tax was on the agenda. And,because every penny counts,not electing to allow the 10% reduction in benefits they recieve every week,to cover the bill.How can putting the families worst hit by the economy in this position, possibly be viewed as
Maureen
February 2, 2009, 4:50pm (report abuse)I received my 2008 Federal tax instruction booklet(1040 With Schedule A&B) along with the 2008 NY State tax instruction booklet (IT 201) & there is nothing mentioned about the suspension of Unemployment taxes. Where do we get this confirmation if there is an amendment before we do our taxes in April ? If you do your taxes now, there is nothing witin any of tax forms allowing you receive relief from Unemployment taxes.
Both Obama & McCain promised 2008 & 2009 Unemployment tax relief during their campaign but where is the proof within our tax forms ?
I believe it is too late for 2008 simply because the tax instructions are already out & documented.
There is no public announcement as to what form to file for Unemployment tax relief. It is not fair that both Obama & McCain got our hopes up prematurely.
More & more people & families won't be able to put food on the table because of this situation.
It's a disgrace & a hipocracy.
whooya
February 4, 2009, 2:30pm (report abuse)Im holding off filing too. Hoping that he keeps his promise on this and suspends taxation of unemployment benefits. I was not able to have taxes taken out while on unemployment. Was hard enough to make ends meet with the UC checks. I think he should also add an extension for atleast 7 more weeks or more, as Im trying very hard to get a job and there is nothing out there for a 55 year old woman with out a college degree.
jerry
February 4, 2009, 3:05pm (report abuse)I hear you whooya, a local tax service told me to hold off as well to see where this is all going, meaning stimulus and possible suspension on UIE tax, let's hang in there a while longer.
mad american
February 4, 2009, 6:42pm (report abuse)if they cant keep there promisses and do there part why should we.if this doesnt get passed i promise not to pay taxes on unemployment and neither should you
phil
February 5, 2009, 12:52pm (report abuse)Hey, I'm out of work..my car died..but thats ok. I'll take the bus to interviews,comforted by the fact that some government employee will be motoring to his house in the hamptons in his new hybrid,paid for by my unemployment benefits income tax.
jim
February 5, 2009, 5:07pm (report abuse)I have sent emails to Rangel (Ways and Means Committee Chair who didn't pay his own taxes on his DR rentals and who left this out of the House version), McCain and Obama who BOTH promised a moratorium, Feingold (who tends to be a sensible leader in the Senate), Boxer (my state Senator), and Stowe (Senator from Maine who introduced this bill originally that got stalled in Rangel's Committee).
To date, no responses from anyone.
Please do speak up if this is as important to you as it is to me, an unemployed professional for 6 months that has sent out at least 100 resumes and saw my salary go down by 2/3 at least to the UI benefit.
Extending and taxing benefits just creates more taxes, it's illogical and offensive considering the multitude of other handouts to people with means.
jo
February 9, 2009, 10:02am (report abuse)please make the no tax on unemployment benefits cover 2008 also.
jgibson
February 9, 2009, 4:15pm (report abuse)I don't understand why unemployment payments have EVER been taxed. I don't see the point in paying the benefit to people just so they can pay some of it back. My COBRA takes up a healthy part of my unemployment, and it wasn't enough to cover my house payment to begin with. I wish we'd hear more about this and quickly, so I can file...
jerry
February 9, 2009, 7:00pm (report abuse)I hear you jgibson, I have not heard a thing in a while, i'd like to file as well.
RUSS
February 9, 2009, 7:48pm (report abuse)THIS BILL S155 NEEDS TO GET PASSED ON ITS OWN OR IN HR1.BEFORE APRIL 15TH 2009.THEY REALLY NEED TO TALK ABOUT THIS .ITS THE BEST WAY TO STIMULATE PUT THE MONEY IN THE HANDS OF THOSE WHO HAVE TO SPEND IT.WITH UNEMPLOYMENT SO HIGH DO YOUR MATH BOYS.BANG STIMULUS.
Sondra H.
February 11, 2009, 11:32am (report abuse)This bill should be for 2008 as well, the recession began in late 2007! The stimulus is beginning to look like more dumping more money to the rich and powerful while the most needy are overlooked.
nmetro
February 12, 2009, 12:18pm (report abuse)Apparently, because of the Budget Policy Institute, they convinced Congress that $25 a week extra is more stimulative than suspending income tax on unemployment benefits. Therefore, the chances of tax relief for 2008 is nil. Considering the Democrats are against any more tax cuts, also reduces the chances of any passage. Even though President Obama and John McCain promised they would do this. It goes to show that politicians will say anything to get elected.
Jerry
February 12, 2009, 1:25pm (report abuse)Sadly it appears that you are correct nmetro.
jim
February 13, 2009, 2:15am (report abuse)Welcome to the machine
kate
February 13, 2009, 4:38pm (report abuse)talk about a "crisis in confidence" ! I went doo-to-door during the elction, taking untold abuse from di-hard rebublicans, spent countless, unpaid hours on the phones to get out the vote...and for what? Just so I can have one more bill (taxes on unemployment benefits) I can't afford to pay. Thank you, dems, for looking out for "the least among you". In the short-run, I'm screwed. I can only hope jobs I might qualify for will be created.
be
February 16, 2009, 5:29pm (report abuse)please i have no moneyto pay my unemployment taxes will they put me in jail/
Ali
February 16, 2009, 5:45pm (report abuse)Seems they cannot suspend the on unemployment benefits because the money is needed for more CEO bonuses! Very disappointed in Obama and what I perceived as his change policies; caring for "main street" Americans.
Ken
February 18, 2009, 9:53am (report abuse)Well,keep giving your money to Wal-Mart,and support China and Taiwan,while this country's economy goes in the toilet!!
Bob
February 25, 2009, 9:15pm (report abuse)What irks me is that I personally heard Obama say twice during campaign stops in NC that he thought taxing unemployment benefits was stupid and that if elected, he would do away with the tax. Yeah...right.
nmetro
February 26, 2009, 5:32pm (report abuse)If you think failing on this promise is bad; the mortgage companies and banks are pushing Congress to not allow bankruptcy law judges to modify mortgage loans, unless they are subprime loans. Of course, this will hit the unemployed as a second wammy with having the unemployed paying income taxes.
Jerry
February 28, 2009, 12:10pm (report abuse)Did my 2008 Taxes yesterday, I owe big time since HR 155 was not passed and Pres Obama did not come through on his pre-campaign promise, thanks, :(
Alien_Hybrid
March 2, 2009, 4:08pm (report abuse)I am annoyed that this Unemployment Benefit Tax relief has not been passed. It is unbelievable that the bail out did not include this for average out of work Americans like myself, especially since the promise was made during the election.
dmw
(logged in user) March 2, 2009, 6:48pm (report abuse)From OpenCongress H.R> 6867 http://www.workforceatm.org/articles/template.cfm?results_art_filename=UIPL... />
http://wdr.doleta.gov/directives/attach/UIPL/UIPL12-09.pdf
http://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2712
http://www.nelp.org/page/-/UI/eb.report.feb.09.pdf?nocdn=1
Section 2005 provides for a state to, at its option, permit certain individuals to qualify for EB in cases where there is no overlap between the individual’s benefit year and the EB period. Specifically, the state may permit individuals to qualify for EB when the individuals haveexhausted Emergency Unemployment Compensation (EUC08) during an EB period that began on or before the date the individual exhausted."
Another good reason to try to get your state to adopt the TUR trigger is you could get 20 weeks instead of 13.
http://ows.doleta.gov/unemploy/trigger/2009/trig_030109.html
DavidB
March 5, 2009, 2:19pm (report abuse)I just found out that my now ex wife hadn't filed our taxes properly back in 2001 when we were still married and I was unemployed. Currently unemployed no UEB and no income due to accident, am told that I owe taxes and penalties on my 2001 UEB because it wasn't claimed. WHY ARE WE TAXED ON UEB TO BEGIN WITH SINCE WE PAY IN WHEN WE ARE WORKING? To me that sounds like double taxing since they tax us in the gross income to begin with then take out all the taxes including UEB and other things. To me UEB should never be taxed to begin with considering the cost of everything, the shape of the economy, and though oil prices are going down gas continues to go back up again. Who is really profiting from this? The Rich sice certainly not me or the average person.
pam
March 5, 2009, 9:52pm (report abuse)pass this bill to help people who need it on unemployment short anyway from less working makes more
Antoinette
March 9, 2009, 9:51am (report abuse)Pass the bill as soon as possible to help those that need it the most. Every penny they get they need!
reddeco
March 10, 2009, 7:24pm (report abuse)PLEase pass this bill for 2008 also!!!!! i cant go to jail.
mjh
March 12, 2009, 11:27am (report abuse)this is ashame that it did not pass. This is a lot of money I am many others owe back from taxes on unemp. insurance for '08, money don't really have at all to pay back and on top of it all, my extension stopped due to having to refile new claim due to aniverary date being up, thus all the money in the federal has now been preceded by the state benefits since I went back to work and just made enough for base pay period, but cuts in half from $1500 to $576. Makes no sense as $365 per/wk is sitting there but cannot be used.
Doug
March 14, 2009, 12:59pm (report abuse)I received a total of $14,042 in unemployment payments for 2008 and I am still out of work as of this date. 10% of that amount is due in federal tax. How will I pay it? Out of my unemployment income. Granted, I could have had fed tax witheld/deducted, but I need every penny I can get to survive day to day. Obama made a campaign promise to eliminate the federal unemployment tax. I pray he follows through.
mjh
March 14, 2009, 2:24pm (report abuse)Doug- I am in your same boat, grossed around $13,100 from '08, however I'm almost certain its pretty much etched in stone and clear that we WILL HAVE TO pay back all federal taxes earned from unemp. insur. for '08. It did not go trhough as talked about so we'll be paying back, me maybe in installments since its $750 for federal alone owe back.
Again, as many have stated, it makes very little sense being that the money will be added somewhat with $100 per/wk. in total funds to claimants beginning very soon.
mjh
March 14, 2009, 2:25pm (report abuse)sorry, meant to say $100 per month under new stimulus bill.
Jkrontz
March 16, 2009, 3:31pm (report abuse)Please stop taxes on unemployement, we can not make it without it, there will be one more house foreclosed. My husband has been laid off today after 8 eights. Please do the right thing.
jk
mjh
March 16, 2009, 5:14pm (report abuse)unfortunately, nothing is going to happen unless the people with the power, the politicians CARE to do somethign positive for the lower to poverty riden people, being our state congressional leaders, senators, and especially our governor making something happen. I think it's too late for '08 taxes being mid march and it is what it is. Mise well file and get it over with and pay back and hope the unemployment insurance benefits helps us that need help.
dlt
March 17, 2009, 2:01pm (report abuse)Let your opinion be heard at the White House! www.whitehouse.gov. There you will find a direct email link to the President. Good luck to all of you.
dlt
March 17, 2009, 5:39pm (report abuse)while that appears to be quite encouraging to some, it isn't all that easy with all the loopholes left in the policies as they develop new guidelines and they are so busy with so many bills and other stimulus events that even the local congressional leaders who represent us don't often respond or fully become aware of all the bylaws and possible regulations and/or loopholes here
gregg
March 21, 2009, 1:36pm (report abuse)i give one half my benifits for child suport ..tell me , how can i live on 1022.00 a month? please we all need help not just banks and car makers. RENT IS $800 A MONTH. I WAS FORCED TO MOVE IN WITH MY 74 YR OLD MOTHER ALSO MY 19 YR OLD DAUGHTER LIVES WITH US TO ,, MY MOTHER LIVES ON A FIXED INCOME AND CAN NOT BUY MEDS BECAUSE WE ALL HAVE TO EAT .. MAYBE IT ISN1T WORTH LIVING ANE LONGER,.
Tom in Anaheim, CA
April 13, 2009, 8:44pm (report abuse)This president lost my vote in 2012 for breaking his campaign promise on this issue. I'm fortunate to be working but was not from 5/08 until 11/08. This breech of trust will cost me $2600 in Fed Income Tax. That's $2600 cash out of pocket. Now we see the bill is on the slow track and all the writings say if approved it will be 2009-2011. Thanks for nothing Obama. I got nothing but grief from #43 and I'm getting nothing but grief from #44. I DO NOT see any change that even remotely benefits me.
K in SD
April 15, 2009, 11:57am (report abuse)My wife and I have both been unemployed since Feb. 08. I've sent out over 200 resumes to date, and can't get a job offer that pays more than I currently receive on unemployment. I'm sincerely grateful for the extensions provided, but I'd rather be working, as the unemployment compensation barely covers my liabilites (which are few...no cc debt or car note) My business degree and the 3.8 gpa on my transcripts seems to have little value in the current employment climate.
We just paid out almost 2K in fed income tax for my 2008 return. That was the last of our savings. we're officially broke.
How's that "Hope and Change" working out for the rest of you?
Robin in CT
April 16, 2009, 1:36pm (report abuse)This is a great move which is late in coming. Now I will be waiting for them to do the same for AmeriCorps stipends!
Marlene
April 19, 2009, 11:20am (report abuse)Buffalo, NY We're starving and barely surviving and then have to pay taxes on this too....where do we get it from and what about all the dollars WE put into the systems for years? I had to drop health ins. almost a year ago. We are more than upset. Send the money to the people in the United States FIRST who need it before sending it off to other countries. There is something very wrong with what's going on. Please help us!
data
May 13, 2009, 3:11am (report abuse)Master's Degree Secondary Education, Science Teacher Laid off since last year. No vacancies, no money, but wait, you owe us taxes on your unemployment. Something really wrong with this picture.
Science and Math with a Masters? Some Changes Going On Here Allright!
Its going to be a hot Summer in a tent really soon.
BB in Oregon
July 27, 2009, 2:36am (report abuse)More and more people will be running out of UI benefits soon. The ones Obama promised not to tax. (HA HA)What will happen then? Move in with relatives? (OUCH) I wonder if there are enough bridges in this country to provide for our shelter needs. We'll find out shortly. Good luck all.
Debbie
September 10, 2009, 8:23pm (report abuse)I was employed for 11 yrs by the same company, I lost my job to part time employees for lesser wages and no insurance. I have not had tax's heald out of my unemployment because between paying my rent, Utilities and food car and insurance I have kept up my health insurance and scrips. now I have to figure out how I'm going to come up with the money for taxs! I'm hurting as it is just being on unemployment. I can't come up with federal and state tax's. Guess I'm going to jail or be more indebt.
Debbie
September 23, 2009, 8:48am (report abuse)I havn't been able to affored to have taxs taken out of my Unemployment. I'm covering my own health insurance since I'm on meds and need Drs. Care Soon Winter will be here and I'm scared I won't be able to cover the high cost of heat here in Michigan. I don't know where I'm going to come up with the extra money to pay for taxs. I look every day for a job but being 53 yrs old and compeating with younger and foreign labor under the H1B visa program There are no jobs here. I'm scared If the unemployment runs out I will be living in the streets and leaving home to another state for work.
Shirley's Post
October 29, 2009, 10:30pm (report abuse)Debbie you took the words right out of my mouth...I'm 59 years old. If need be, I'm going to Washington to live on their streets or be send to jail (roof over my head and 3 meals a day) Thinking of all of you and the rough road we've been on.
Norma
November 4, 2009, 10:16pm (report abuse)16 months out of work, 55 yrs old. I had about 7 interviews during that period. I had to file bankrupty in April. I just found a job at 25% decrease. I am happy just to of found work. The tax on unemploymnet should just be eliminated!!! I can not pay my taxes either. I could not afford to have them taken out.
Erica
November 8, 2009, 9:56am (report abuse)Let's get some attention on this as we get close to the end of the year. I just returned to work after a year and with digging out of this hole, there is no way we can afford to pay taxes too.
Danielle Long Island NY
November 8, 2009, 8:45pm (report abuse)Possibly sharing prison cell with Debbie and Shirley. UI pays about 35% of old salary PRE-TAX. Legally, I cannot work to suplement difference much less afford to pay TAX! Come April- it's DOOM. Let's start writing to Govt now, and notify the News to start bringing attention to this. Sure we aren't the only ones losing sleep over this.
John newly unemployed
November 17, 2009, 9:05am (report abuse)Considering the fact that we bailed out the banks, and all they did was raised our credit card rates "living example chase just raised my wamu card to 24.66%" I think this is a small small jester to help the unemployed who passed hard work allowed the financial institution their greedy bailout. I say finally hurray for the people we voted into office, lest see if they are enough of them to vote this in.
Minnesota Mary
November 19, 2009, 7:47pm (report abuse)We need to be pushing this bill just as hard as the extension bill was pushed. Also, if your state taxes UI benefits, your State Representatives should be contacted as well as those in Washington to see if the same thing can be done at the state level. Some states don't tax benefits, but mine does, and I've contacted some of the powers-that-be to see if there will be any action taken here, as well as in Washington at the Federal level. None of need this to bite us in the butt come April 15th . . .
DARKBLUE
(logged in user) November 19, 2009, 8:15pm (report abuse)I will be contacting them on this ASAP..
copied from 3548
November 22, 2009, 12:28am (report abuse)Dear IRS
Enclosed is my 2000 Tax Return & payment.
Please take note of the attached article from USA Today. In the article, you will see that the Pentagon paid $171.50 for hammers and NASA has paid $600.00 for a toilet seat.
So, please find enclosed four toilet seats (value $2400) and six hammers (value $1029). This brings my total payment to $3429.00. Please note the overpayment of $22.00 and apply it to the "Presidential Election Fund," as noted on my return. Might I suggest you the send the above mentioned fund a "1.5 inch screw?" (See attached article...HUD paid $22.00 for a 1.5 inch Phillips Head Screw.)
It has been a pleasure to pay my tax bill this year, and I look forward to paying it again next year. I just saw an article about the Pentagon and "screwdrivers."
Signed,
A Faithful Taxpayer