Silver Spring, MD --(PR.com)-- With a national unemployment rate still hovering around ten percent and the unemployment rate in Maryland still at 7.2%, Silver Spring residents continue to feel the financial pinch. The local Four Corners office of Jackson Hewitt Tax Service® highlights several critical tax considerations unemployed consumers need to be aware of that may help them when it comes time to file – including a new tax benefit exempting the first $2,400 of unemployment compensation from their taxable income.
Here are the four top tax issues individuals unemployed in 2009 need to be aware of:
Recently signed Workers, Homeownership, and Business Assistance Act of 2009 extends unemployment benefits. The provision provides another 14 weeks of benefits to all unemployed individuals who have exhausted their benefits or will do so by the end of the year. In states where the unemployment rate is at 8.5 percent or higher, individuals will receive an additional 6 weeks.
Understand the tax free unemployment benefit for 2009: In most tax years, all unemployment compensation received is considered taxable. But for one year only under the American Recovery and Reinvestment Act (ARRA), up to the first $2,400 of unemployment compensation that an individual receives in 2009 is tax free.
"For example, if you received $5,000 in unemployment compensation, you will only be taxed on $2,600," said John J. Lah, MBA, CFA, Franchise Owner of Jackson Hewitt Tax Service. "For a single taxpayer, this could mean a savings of as much as $240 in income taxes. Married taxpayers who both received unemployment benefits during 2009 will see even greater savings, given they are each eligible for the exclusion."
The Jackson Hewitt tax preparers in Four Corners SILVER SPRING, MD are available to assist unemployed taxpayers with understanding all relevant tax considerations. To schedule an appointment, call the local Jackson Hewitt office at (301) 681-7180 or stop by 109 University Blvd. West on M - F from 9am to 8pm.
Jackson Hewitt Tax Service Inc. (NYSE: JTX), with approximately 6,600 franchised and company-owned offices throughout the United States during the 2009 tax season, is an industry leader providing full service individual federal and state income tax return preparation. Most offices are independently owned and operated. Jackson Hewitt is based in Parsippany, New Jersey.