The deadline to file taxes, including for most of those unemployed, is Tuesday.
People whose income exceeds $25,900, if they are a joint filer under 65, and $12,950, if they are a single filer under 65, must still pay their taxes. However, the procedure to file taxes is somewhat different than that for those employed. People laid off from a job may be eligible for a number of tax benefits and refunds.
TAX DAY 2023: EVERYTHING YOU NEED TO KNOW IF YOU HAVEN’T FILED YET
Unemployed taxpayers have to pay taxes on their unemployment benefits. Those on unemployment benefits will receive a Form 1099-G stating the number of jobless benefits received in 2022, USA Today reported. People who were laid off and received severance pay must include that total in their taxes as well, on the W-2 form received from their employer.
The hit to income that taxpayers received from being laid off may put them in a lower tax bracket in which they can receive tax breaks. Single, childless taxpayers with an adjusted gross income at or below $16,480 or married filing jointly with an AGI of $22,610 qualify for the earned income tax credit. The same applies to taxpayers with an AGI of $59,187 with three or more children.
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Those with a low income and children may also qualify for a child tax credit, a child and dependent care credit, or a saver’s credit.
Earning $600 or more from a side project must also be reported to the IRS through a Form 1099-NEC.
