moonchild
VIP Contributor
Being unemployed can be a challenging time, both financially and emotionally for an individual, but if you lived in developed countries like the US, UK or other high end European countries, there are tax relief options available that can help you to ease the burden, for the sake of context, here are some tax relief programs for the unemployed.
Uemployment benefits : these are the most widely known, unemployment benefits are taxable income, but most federal governments offers a tax exemption of up to a certain amount for unemployment benefits received. this in a nutshell means that if you received less than the amount in unemployment benefits last year, you won't owe any income tax on them.E
Second one is earned Income Tax Credit - If you earned income before becoming unemployed, you may still be eligible for the Earned Income Tax Credit (EITC). The EITC is a refundable tax credit for low-to-moderate income earners that can provide a significant tax break.
There's also retirement account withdrawals - If you're in a pinch and need money to pay for living expenses, you may be able to withdraw funds from your retirement accounts without penalty. individuals affected by the pandemic can withdraw up to a certain amount from their retirement accounts without penalty provided they meet a certain criteria.
The last one is local tax relief, a lot of localities offer tax relief programs for the unemployed. For example, some states have tax exemptions for unemployment benefits, while others offer property tax relief programs for low-income households, it depends on the priority of a given state.
Being unemployed is tough, but taking advantage of these tax relief options can help ease some of the financial strain, these relieves are there to help citizens before they get back on their feet, go through the post and see the one that matches with your need and apply it.
Uemployment benefits : these are the most widely known, unemployment benefits are taxable income, but most federal governments offers a tax exemption of up to a certain amount for unemployment benefits received. this in a nutshell means that if you received less than the amount in unemployment benefits last year, you won't owe any income tax on them.E
Second one is earned Income Tax Credit - If you earned income before becoming unemployed, you may still be eligible for the Earned Income Tax Credit (EITC). The EITC is a refundable tax credit for low-to-moderate income earners that can provide a significant tax break.
There's also retirement account withdrawals - If you're in a pinch and need money to pay for living expenses, you may be able to withdraw funds from your retirement accounts without penalty. individuals affected by the pandemic can withdraw up to a certain amount from their retirement accounts without penalty provided they meet a certain criteria.
The last one is local tax relief, a lot of localities offer tax relief programs for the unemployed. For example, some states have tax exemptions for unemployment benefits, while others offer property tax relief programs for low-income households, it depends on the priority of a given state.
Being unemployed is tough, but taking advantage of these tax relief options can help ease some of the financial strain, these relieves are there to help citizens before they get back on their feet, go through the post and see the one that matches with your need and apply it.
