Info on 2009 Tax Break for Unemployed

HOUSTON - No question, taxes may be the last thing you want to think about if you're looking for a job. But, you might also be able to take advantage of a break designed specifically for 2009.

Accountant Bob Martin fills us in.

"There is a special provision for last year, for 2009, that the first $2,400 of unemployment compensation that you receive is not taxable."

You should have already received the form in the mail by now. If you don't take care of the taxes, you could get hit with a bigger bill.

Martin tells us if you haven't done it, you're not alone.

"Very few have taxes held from their unemployment compensation. But, if you have trouble budgeting, you know you're going to have problems down the road. It's a good idea to just take care of it at the front end."

What are your options if money is tight?

Martin suggests getting an extension.

"But that's not an extension to pay," he says. "So, you could still be subject to additional interest and penalties if you don't pay by April 15th."