Personal Insights

Programs to Take Advantage of When You Lose a Job

If you’ve lost your job, you’re not without help. You may be eligible for unemployment benefits and tax breaks.

Losing your job is an unfortunate and daunting thing, and it could happen when you least expect it. Finding a new job can also take some time. However, the government has a few safety nets. Use this checklist to take advantage of programs that can help you while you’re getting back on your feet.

• File a claim for unemployment benefits as soon as possible: Each state operates its own unemployment insurance program but must follow federal guidelines. In general, if you have become unemployed through no fault of your own and meet other eligibility requirements, you may qualify for up to 26 weeks of unemployment compensation.
  
  You’ll have to provide information about your previous employment, such as dates of employment and the address of your job. Remember, you must report unemployment benefits as income on your tax return, so keep all your paperwork organized.
• Look into health insurance coverage: With the Affordable Care Act, healthcare coverage is more accessible. The government’s health care exchange is open to everyone and doesn’t require you to get insurance through your employer or former employer’s plan. If your plan was with your former employer, be sure to look at Healthcare.gov for affordable options. Whatever you decide, check with your state before deciding to go without health insurance, as there may be a state fee for not having health coverage.
• Get assistance finding or training for a new job: While you’re applying for benefits, it may be a good time to beef up your resume. The Department of Labor funds several training programs and other employment-related services through the American Job Center that can help you find work, so check if you’re eligible.
• Consider extended benefits: If you’re nearing the end of your 26 weeks of unemployment insurance, you may be eligible for more benefits under certain circumstances. When unemployment rates are particularly high in your state, additional compensation under the Unemployment Insurance Extended Benefits program may be available. The program adds up to an additional 13 weeks of benefits in some states. Others offer up to 20 additional weeks.
• Research credits when tax time comes around: You may be able to claim the Earned Income Tax Credit (EITC) if your period of unemployment has taken a big bite out of your earnings. Your income must be below certain limits, and those limits depend on whether you’re a single filer or are married filing jointly, as well as how many children you have. Also, remember that if you have received unemployment compensation in a given year, you should receive a Form 1099-G that shows the amount you were paid. Any unemployment compensation received must be included in your income, and you may be required to make quarterly estimated tax payments; however, you can choose to have federal income tax withheld. Consult www.irs.gov for additional information.

Losing your job can be disheartening, but you’re not alone. These programs can help offer you a little peace of mind and help you make ends meet while you find a new role.