(Courtesy of the New York Times “Bucks” blog)
If you collected unemployment this year, the first $2,400 of any unemployment insurance collected is not subject to tax. You should receive what’s known as a Form 1099-G, which will show what you were paid and any federal income tax you elected to have withheld. If you didn’t withhold taxes, you may owe them now. Severance and pay for vacation time is also taxable.
If you’re one of the many Americans who couldn’t find a job this year and you decided to strike out on your own, you’ll need to familiarize yourself with a new set of tax rules. While there are many more deductible expenses, there are also new taxes to take note of. Even if you’re temporarily doing consulting work, you are considered self-employed. That means you’re required to pay income tax, as well as self-employment taxes, including Social Security and Medicare. To learn more about how taxes will effect you this year, visit http://www.irs.gov.
Your Work, Your Way 
I wanted to give you thanks for this fantastic post!! I absolutely liked each small piece of it. I have bookmarked your site too
LikeLike
This is such a superior article. I look forward to seeing more of your writing.
LikeLike
I can relate to this really easy, thank you. I have subscribed to your RSS.
LikeLike
I wanted to applaud you for this magnificent post!! I certainly liked every portion of it. I have bookmarked your site to have a look at the latest articles you post. Thanks again!
LikeLike
I Will have to come back again when my course load lets up – even so I am taking your RSS feed so I can read your site offline. Thanks.
LikeLike