I got my newsletter from my CPA and saw a very interesting article titled Beware of Tax Consequences of a Job Loss. Intriguing!
My first thought was “geesh, after all of this, now the gov’t wants to kick me while I’m down?”
Admittedly, I’m not in an active job search anymore, but I’ll never forget the experience and the feelings.
Anyway, here are some questions that he answers:
- What if I receive unemployment compensation?
- What if I lose my job?
- What if I am searching for a job?
- What if my employer goes out of business or in bankruptcy?
The bottom line, as usual, is that you should consult an accountant. State laws may vary, and they should be up to speed on new changes from the Obama administration. There are things you should do and not do (pay taxes on severance, deduct certain job search expenses, etc.), and it’s better to do it right now.