How to Calculate Your Unemployment Benefits

How to Calculate Your Unemployment BenefitsHow to Calculate Your Unemployment BenefitsUnfortunately, theres no easy way to calculate how much money youll receive through unemployment benefits or for how long youll be able to collect those benefits unless your state has an online unemployment calculator. Each state has a different rate, and benefits vary based on your earnings record and the date you became unemployed. Are You Eligible for Unemployment? First, make sure you are eligible for unemployment. While it varies based on your state, you generally need two things to qualify. First, you need to have lost your job through no fault of your own. It typically means you are ineligible if you quit- although there are exceptions, like if you quit because of impossible work conditions. If you are fired for cause, you also are likely ineligible. You also have to have been employed for a minimum amount of time or have earned a minimum amount in compensation. Once you find out whether you are eligible, you canfile a claim for unemployment benefits. If youre not sure about your eligibility, check with your state unemployment office. You dont want to lose out on unemployment compensation because you didnt think you would qualify. How Much Will Your Check Be? Once youfile for unemploymentand are approved, you will begin to receive benefits. Your benefits might come in the form of a check, but more often they will come in the form of a debit card or direct deposit to your bank account. It varies by state. You typically canfile weekly online, by email, or by phone. The amount you receive depends on your weekly earnings prior to being laid off and on the maximum amount of unemployment benefits paid to each worker. In many states, you will be compensated for half of your earnings, up to a certain maximum. Benefits usually arepaid for a maximum of 26 weeks. Some states provide benefits for a lower number of weeks, and maximum benefits also vary based on where you liv e. Regardless of how much you make, you never cancollect more than the state maximum. Most states pay benefits on a weekly or biweekly basis. There may be a lag before you receive your first check. For details on when to expect payment, check the unemployment website for your state. Finding a Benefits Calculator There are two types of unemployment calculators. One tells you how much money you are entitled to collect, and another tells you how many weeks your benefits will last. New York, for example, has aUI Benefits Calculatoron which you can enter the starting date of your original claim to determine how many weeks of UI (Regular Unemployment Insurance Benefits) you will receive. Wisconsin has aWeekly Benefit Rate Calculatorthat helps you figure out the amount of your unemployment benefits. Check with yourstate unemployment officewebsite to see if they have any information that might help. If one is available, you usually canfind it on the FAQ section of their website.If they dont have a calculator, they may have a chart that lists weeks of eligibility. You can use that information to determine how many weeks of unemployment you are entitled to collect. If you are struggling to find information on your state unemployment office website, you could visit the office in person or contact the office via phone or email. You usually canget information about the drehort of the office, the phone number, and any email addresses under the Contact Us section of the unemployment office website. However, it often isdifficult to get through to an unemployment office over the phone. Most offices encourage you to file claims and calculate benefits online. Taxes Unemployment benefits are considered taxable income, and the unemployment compensation you receive must be reported when you file your federal and state tax returns. Taxable unemployment compensation generally includes any amounts received under the unemployment compensation laws of the United States or of a s tate, so bothstate unemployment benefitsand federally fundedextended benefitsare considered income. Supplemental unemployment benefits received from a company-financed fund are not considered unemployment compensation. Rather, these benefits are fully taxable as wages and are reported onForm W-2as income. Withholding Some states withhold a percentage of your unemployment benefits to cover taxes- typically 10 percent. If the option to have taxes withheld is available, you will be notified when you sign up for unemployment. Its a good idea to consider having taxes taken out of your checks rather than having to pay income taxes on all the unemployment you received when you file your tax returns for the relevant year. Reporting If you received unemployment compensation during the year, you should receive Form 1099-G, which is a report of income received from a government source, showing the amount you were paid. Any unemployment compensation received must be included in your inc ome and should be reported in the appropriate sections of your federal and state tax returns. Avoid Calculator Scams Some websites say they will figure out your unemployment benefits or file a claim for you. However, the only distributions-mix you can get a definitive answer or file for benefits is on your state unemployment website. ?Avoid getting scammed, and do not give personal information to a third-party website.