Tax Question!

[Disposable Heart]

Please only answer if you know and please do not answer about something I know! Oh, and the Indiana.gov site has NOTHING that I can find regarding this!

In regards to recieving unemployment benefits from Indiana:

I recieved unemployment for a while, I tried and tried to get them to withhold. No luck, so I just sent them estimated tax stuff instead (took unemployment for roughly 3 quarters worth, sent 3 quarters of money). I sent the Federal the 10% from the benefits recieved. What is the state's percentage on something like this? I sent the state 10% already (plus sent another 10% to the Federals), what severity of damage am I staring at next year in me owing them?

Thanks all!

 

[Indy_Guy_77]

is unemployment even taxable?

-j-

 

[Disposable Heart]

yepper, Feds want 10%, they consider it income! (jerks)

Anyone know generally what Indiana's rate is?

 

[bigus_D]

I read the post above, and don't know what you know... so I'll just say what I want.

Unless you had business income (i.e. not W2 income) the previous year, you basically don't have to pay estimated taxes. I had 1099 income only two of the past 10 years, and each time turbo tax explained that the following year I would need to pay estimated taxes... but for the current year it was not required. I have not been audited and have not paid penalties. So... I believe you've gone above and beyond by pre-paying. When you finalize your 2009 taxes, this will all get worked out.
EDIT: Looks like my case may be specific to my income... each time I had 1099 income it was either a small enough portion of total income to stay under the 90% payment requirment or the previous year I had no income (student) and had therefore paid the 100% requirement based on the prior year's tax liability. Confused yet?

I also found this: IRS Outlines Tax Implications for Unemployed - Newsroom - Inside INdiana Business with Gerry Dick It appears you get to deduct the first $2,400 of unemployment benefits received.

Use for W-4V to adjust enemployment withholdings.

 

[Disposable Heart]

See, that is the problem, I send countless of those in, but no luck. I sent what the federals wanted (I was told that the estimated tax should be used in this case where the W4V was "ineffective or not recieved"), but I wanted to know if I had sent the State sufficient or are they wanting more than 10% of what I recieved in unemployment?

 

[Disposable Heart]

bigus_D, from what the article said, it looks like the state is 10% as well, but also, if I fall within a certain situation, I get to deduct the first $2400?

 

[bigus_D]

bigus_D, from what the article said, it looks like the state is 10% as well, but also, if I fall within a certain situation, I get to deduct the first $2400?

It looks to me (I am not a tax advisor) that State tax is not applicable in Indiana on Unemployement benefits. The federal rate is a 10% flat.
This article may help as well: Indiana Unemployment Insurance, Compensation Answers and Job Search. IN Unemployment Office

 

[hemicharger]

Paging fisherscpa!!!!!!!!!! fisherscpa are you available?

 

[csnoski]

Ok...first off In Tax is only 3.4%...your county may also have a 1% tax, so having sent in est'd taxes at 10% you have more than covered. Since your IN return starts with your Fed AGI, if it turns out your unemployment was 100% taxable to the fed, you may be able to deduct some portion of it on IN Schedule 1....Here is the In instructions Page 21 has a worksheet. The taxability of Unemployment depends on how much other income you have. If it's quick and easy will do quick search on Fed.

http://www.in.gov/dor/files/08-it40bk.pdf

 

[csnoski]

Unemployment IS fully taxable to the fed so you will want to look at the worksheet referenced in prior post to see how much (if any) unemployment comp rec'd can be deducted from your income before computing your tax for IN. Regardless, having 10% withheld to the state more than covered the liabiity.

 

[VN Vet]

I reapplied for extended benifits. I asked for taxes to be withheld and the did. I am now getting taxes withheld.

I have an interview with a head hunter tomorrow. Please send prayers for me. Thanks.

 

[Disposable Heart]

Go get em man! Confidence separates you from everyone else in this market! Good luck!