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Question
I am currently collecting unemployment benefits in Massachussetts and have had a bad year. I really need every penny I recieve from these benefits with family and medical expenses. I had no tax deductions taken out each payment and when all is said and done I will have received $28.000.00 for my time out of work. I know somehow I will be responsible for paying taxes on this. I just wonder what kind of tax amount I will be looking at..
Submitted: 31 days and 10 hours ago.
Category: Tax
Value: $15
Status: CLOSED
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State/Country relating to question: Massachusetts
Already Tried:
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Posted by
Merlo
31 days and 10 hours ago.
Info Request
Hello soupy,
Was the $28,000 from unemployment the only income you had for the entire year? If you had other income, how much total did you have for the year? (Include your spouse's income if you are married)
Do you file your return as single or married?
Do you have children or other dependents that you claim?
31 days and 10 hours ago.
Reply
I also made $4500.00 for 3 months work. Ive been out past 8 months. I work construction.
Posted by
Merlo
31 days and 10 hours ago.
Info Request
Hello again soupy
I still need information on your filing status and dependents
31 days and 10 hours ago.
Reply
Oh sorry I file single . no children
Accepted Answer
Hello again soupy,
Thank you for the additional information.
Your total income for the year will be the $28,000 from unemployment plus $4,500 from your construction work. The first $2,400 in unemployment benefits is not subject to tax. You are also allowed a standard deduction of $5,700 plus one personal allowance of $3,650. This will leave you with taxable income for the year of $20,750.
Your approximate federal tax liability on this amount will be $2,695 and you would also owe approximately $1,100 in MA state taxes. This is your total tax liability for the year, and some of these taxes may have already been paid in as deductions from your paycheck when you were still working earlier in the year.
If this was helpful please press the Accept button.
Thank you soupy and let me know if you have more questions.
Expert:
Merlo
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Answered:
10/22/2009
Accountant
25+ years tax consulting. Specializing in returns for US citizens living abroad
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