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HiCustomer Thank you for asking your question on JustAnswer.
By the way, it would help us to know:-Please verify if you meant 2009 or 2010 tax year?-Please confirm that your total unemployment benefits are $278 * 9 = $2502?-Please also confirm that your social security benefits are $1167 * 11 = $12837? and that is not Supplemental Security Income (SSI) - correct?
The first $2400 of unemployment benefits are not taxable - so your only taxable unemployment benefits are $102
To determine if your social security income is taxable - following is the test -
half of your social security income plus other taxable income (if any) - if the total is less than $25,000 (for single) - none of your social security disability income is taxable.
Considering deductions - there should not be any tax liability.
So far - if above your only income - you would not have any tax liability and may want to file a tax return to have the withheld taxes refunded.
Thank you again for trusting us with your problem.
Let me know if you need any help or clarification.
Please review my letter--the $278.00 is per week--not per month--@ $278.00
I am already having taxes taken out @ a rate of 10% per check. This will be for my
taxes for 2010. I am collecting social security on a deceased spouse --we were
married for ten years and then divorced.
Sorry for my mistake and appreciate your clarification.
So your estimated unemployment benefits will be $278 * 40 weeks = $11120
Taxable part will be $11120 - $2400 = $8720
Your estimated social security benefits are $1167 * 11 = $12837 - none of which should be taxable (based on the test above)
Thus - your adjusted gross income $8720
standard deduction $5700
personal exemption $3650
and none of your income will be taxable - you may ask to stop tax withholding from your unemployment benefits or file 2010 tax return at the tax time and request a refund.
You do not need any additional withholding form your social security benefits.
Thank you for all your help--now I know what to do from here-on-in.