Tax Topic

Unemployment Benefits - Up to $2,400 tax free in 2009

Under the American Recovery and Reinvestment Act, every person who receives unemployment benefits during 2009 is eligible to exclude the first $2,400 of these benefits when they file their 2009 tax return. For a married couple, the exclusion applies to each spouse, separately. Thus, if both spouses receive unemployment benefits during 2009, each may exclude from income the first $2,400 of benefits they receive.
Here is a link to the IRS News Release: http://www.irs.gov/newsroom/article/0,,id=205633,00.html