Some unemployed people just can’t get a break. All those laid off late last year can probably attest to this. Not only did they lose their chance at getting paid for the holidays, but they also got stuck with the worst time to apply for unemployment and jobs, because everybody knows nobody works right before the new year. If they were lucky, they got some severance pay. But little did they know how much that would come back to haunt them later.
During the month of January, unemployed people were practically salivating every time they went to check their mail. Part of it had to do with how quickly they managed to shed their social skills, but they were also eagerly anticipating their W-2 form. Why? Because they foolishly thought they could quickly apply for their tax refund to temporarily make ends meet after spending all their unemployment checks on presents in December.
With all their W-2s, 1099s, Schedule Ks, and charitable donations in hand, the unemployed quickly plugged in their information into whatever free tax software was available. After plugging in the most basic information it all started going downhill. That number in the upper right hand corner almost immediately went negative, and as more forms were entered, the more negative it went. The unemployed kept hoping the next form would be the savior, but nothing seemed to bring that number closer to positive.
At the end of it all, the unemployed sat there completely flabbergasted at the amount they appeared to owe. No matter what they tried – fudging itemized deductions, putting money in IRAs, making up charities, the number remained the same along with a computerized warning of possible penalties. Unwilling to believe it, the unemployed reentered all their information into other tax software only to get the same exact results.
After sitting in a catatonic state mumbling something about how they owe more than what they’ve collected in unemployment benefits, the unemployed quickly went into denial mode. Then they went into “why me?” mode and tried to make sense of how they could owe so much when obviously they deserved a refund. “I’m unemployed!” they screamed at the sky. “Why are you doing this to me?”
“You got severance,” a white bearded voice replied. ”It pushed you into a higher tax bracket, sucka. Plus you made too much money.”
“No!”
“Yes! Sucka.”
And just like that, a nation of unemployed people decided to wait until they’ve collected enough unemployment checks to pay their taxes on April 15 and not a day earlier.
Tags: taxes, unemployment check, unemployment fail
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I am lucky to be living in an area that hasn’t been hit by the lay off bug. I feel for all who have lost your jobs and hope that the situation will be a short lived adventure.
I can actually picture people screaming at the sky AND your imitation of them. hahahha
Could not stop laughing as I read the title, as yes I am currently unemployed and have put off doing my taxes as I know I will owe money. I am also not sure why everyone keeps asking if I have filed yet. They do not seem to understand how I could owe money as I am not working. I resigned and my last day was December 19. Self inflicted no holiday pay AND no unemployment checks to save up to pay for taxes. Really good move on my part.
[...] I have been getting a little worried that April 15 is creeping up on me. I mean April starts this week! Again from Stuff Unemployed People Like, it’s Putting Off Their Taxes Because They Owe Money. [...]
I’m unemployed and not even getting unemployment because I was a 1099 contractor for most of last year. Which also means I owe about $2,500 in taxes. With absolutely no income from any source, how in the world am I supposed to pay this tax? I think I’m about to have a nervous breakdown…
And how about the fact that unemployment pay itself is taxable? I opted to have taxes withheld from my ’09 unemployment benefits only so I wouldn’t have a nasty surprise exactly one year from now ….
I can not smile at this it only makes me cry. I am unemployed and have been for some time. Not because I do not want to work.There is no work. I was laid off in 2008 because I had cancer and my boss thought it was the best choice for the agency. I am a single mother of 2 and unemployed and I owe taxes. I owe the IRS almost $4,000. Now what? A payment plan…I barley get by now.Food pantry’s and friends helping me out. I see the government bail out the rich and the ultra poor owe money they can not pay. I have a son with severe autism and I can’t find a job to be home when he needs me.It is not like I could get childcare that I could afford even if one existed for kids like him…So now what?! $4,000. seems small to most people it used to to me, now it is more then I could dream of ever being able to pay back. We need heat and food, a roof over head, and medication. I owe doctors co pays and no $ in sight. No jobs in sight…what next America? Who helps the small people? I am looking at selling every thing I own to help my family to survive. Paying taxes is looming over my head like a anvil. Where is our government understanding and aid at this time? I have worked seance I was 15. I have been a honest and good citizen. Now my government says too bad, if you you owe, so pay up! I am ashamed to be an American! It is a depression not a recession!Help your people survive it!!!
Kathy- I too am unemployed and also have a 5 yr old son w/ autism. An I owe the Gov $1400 this year. Very similiar situation. I love my son so much. I will never leave him. It is so hard with his autism. He’s been kicked out of a daycare program before for him just being him. We cant afford to put him anywhere for the day. He does go to EACAP school from 1100-300 but thats it. I dont trust any daycare with him. They just dont want them. My benefits run out this week. And with congress only pushing claim deadline date forward instead of adding TIERS, Im screwd? Im just not going to pay the IRS this year. I cant? With what? Hang in there. Theres only one way to go when youre down here. Up! It will get better by the grace of God.
I am almost ashamed to mention the tax ditch I have dug myself into because I do not have any small children to explain my temporary insanity. However, misery loves company and here goes….I not only received severance when I was laid off in 2007 I tapped into my pension dollars when unemployment was not enough. Lets just say I own $25,000 in addition to the $122,000 I paid in 2008. Yes I am the ‘sucka pushed into the higher tax bracket’ or as my account put it “….all monies received synergistically worked against you at the time.” Supposedly, it should all level out for 2009. I don’t know since I haven’t filed yet [no funds to pay the accountant].
My heart is absolutely broken for all (including myself) who are unemployed. It seems like the only way the government will do something is if half the population becomes homeless and we all just camp out on the streets. I at least can move in with my parents if I don’t find something soon. So much for working my &%$ off in college to earn a degree with a 4.0 GPA and work 15 hour days for the past 20 years. We are going to see a lot of Golden Girl type living situations since all of us unemployed aren’t contributing to social security. As long as our politicians get a paycheck, nothing will change.