Law Changes Make Unemployment Checks Stretch Further Bookmark and Share

March 1, 2009

Recovery Act includes changes to Unemployment programs for workers who have lost jobs through no fault of their own.

The American Recovery and Reinvestment Act signed into law by President Obama in February includes two provisions designed to boost incomes for workers who have lost their jobs through no fault of their own and are collecting unemployment.

The legislation includes a Federal Income Tax exemption on the first $2,400 in unemployment benefits that workers receive in the 2009 tax year. The tax exemption is in addition to an extra $25 weekly Federal Additional Compensation payment that many unemployed workers will receive in the months ahead.

Unemployment claimants do not need to apply for the Federal Income Tax exemption or the Federal Additional Compensation benefits. If they are eligible, they will be automatically enrolled in the programs. Visit the following links for more information on eligibility:

  • Federal Income Tax exemption
  • Federal Additional Compensation $25 weekly payment
  • Although both programs are temporary, they are making a difference in increasing incomes of people struggling to find work in a very tough job market.