The unemployment rate for February was released this morning and we got confirmation of what you and I already know: it’s still getting worse. The official 8.1% unemployment rate is the highest t in 24 years.
In the event you or someone you love is caught in this unemployment storm I want you to understand that the recent stimulus bill signed into law by President Obama included some extra help for the unemployed.
Action Step: Make sure you maximize the new unemployment benefits included in the $787 billion economic stimulus bill.
Extended Benefits. Typically you can collect benefits for 26 weeks. That has been stretched to 33 weeks in the new federal legislation. Additionally many states are providing even longer coverage through state initiatives. You want to check in with your state-and keep checking in-to stay on top of all changes. The computer systems should automatically adjust for these changes, but it doesn’t hurt to double check.
A higher payout. The stimulus bill mandates that all unemployment checks include an extra $25 a week through this year. So if you have been drawing a benefit, it will include $25 more; the payment should show up in benefits within the next few weeks.
A tax break. Normally money you receive in unemployment benefits must be reported as taxable income on your federal tax return. In 2009 there is a tax break: The first $2,400 you receive in unemployment is 100% tax free.
Expanded Coverage. I also recommend that anyone who may have applied for benefits and been turned down in the past few months check back and reapply. The stimulus bill included funding targeted to getting states to expand their coverage of lower-income and part-time workers.
State unemployment offices are inundated right now. You may find the best way to stay on top of the news, and your claims is by computer. If you have recently been laid off you can even apply for benefits online. Click here to find the website for your state’s unemployment benefits office.