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Question: What would happen if i didn't file tax this year? i was unemployed!?

(Posted by: Tyler on 2010-03-16 13:30:47)

I was collecting unemployment for last year and couldn't find a job, I struggled to get by. Now Its tax season and I don't know if I should even do my taxes because I know I wont get back anything because I wasn't working. What will happen if I don't file my taxes? I heard you can skip 3 years without filing your taxes , is that true?

Posted by: Realtyyoudefine on 2010-03-16, 13:35:49

No you cannot skip 3 years without filing. When you "hear " things it is probably some WA guess from an uninformed person. You must file your tax return and report your income. Taxes may have been withheld from your UE. You can file them from free using your 1099-G you received reporting your UE. Just go on the irs website and efile for free. It will just take a few minutes and you might even have a refund coming if too much was taken out in taxes. irs.gov

Posted by: Candice on 2010-03-16, 13:32:51

I don't think you have to file taxes when you are unemployed.

Posted by: bearr41 on 2010-03-16, 13:34:23

Of course that is not true! You must file - it is the law. You will most likely have to PAY the taxes you owe. Unemployment income is taxable. If you put it off you will end up with fines and interest AT THE VERY LEAST. You don't want to mess with the IRS. They will certainly know that you rec'd unemployment and they will be aware if you do not file. Candice should not answer questions if she has no earthly idea what she is talking about.

Posted by: taxesbyJim on 2010-03-16, 13:42:52

Yes, unemployment benefits are taxable income ( this year the first 2400 is not). You should look at the amount and figure out if you will have a balance due the IRS (and state if in an income tax state). If you end up with no taxable income you may want to opt out of filing (I would mail it in any way). In general you are not required to file if your income is below certain values for instance single if your income is less than $9350, Married Filing Jointly less than $18700 The real effect is that if you owe and don't file (and don't pay), then the interest is much more than if you file and don't pay. If you owe you could request a payment plan as well. Bottom line fill out the forms and file is the best advice I can give

Posted by: Judy on 2010-03-16, 14:22:27

You heard wrong about being allowed to skip 3 years. No, not true. If your income including unemployment (minus $2400 since you don't have to report the first 2400 for 2009) is over the limit to have to file for your filing status, then you must file.