S.155 - Unemployment Benefit Tax Suspension Act of 2009
A bill to amend the Internal Revenue Code of 1986 to suspend the taxation of unemployment compensation for 2 years. view all titles (2)
All Bill Titles
- Official: A bill to amend the Internal Revenue Code of 1986 to suspend the taxation of unemployment compensation for 2 years. as introduced.
- Short: Unemployment Benefit Tax Suspension Act of 2009 as introduced.
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U.S. Congress - S.155 Unemployment Benefit Tax Suspension Act of 2009




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I agree and have posted what to do about it on HR 6844 on this site!
Considering that millions of people are losing their jobs, their homes and having to tap into their retirement savings just to survive; relief from taxation of unemployment benefits would be a God-send given all the other economic woes that Americans are facing in these uncertain times. I respectfully urge our elected representatives to pass S. 155 within the next session so that unemployed Americans have one less thing with which to contend.
Yes, this desperately needs to be passed.
Hi All,
How does it work to bring up S. 155 to congress for a vote?
Thank,
From CA
Urge your Senators to support this bill!
It’s all the more important that this bill be supported by the public, since the House just rejected Republican proposals (unbelievably) to temporarily suspend taxes on unemployment benefits in HR 598, which was already voted on in the Ways and Means Committee. The logic that those opposing the measure used was completely false and doesn’t hold up with inspection of actual tax information.
When Obama was campaigning for the highest rank, wasn’t this one of his promises, to suspend income taxes on unemployment?
Now he can’t do anything about it???????
You’ve just got to love these money grabbing politicians, always out to line their own deep pockets with tax payers money!
I don’t remember that specific promise, but even if he didn’t make it, I’ve been opposed to taxes on unemployment since 1986, when they were instituted under Reagan! Obama’s not a Senator anymore, so he won’t be involved in all the little details and micro-management of these bills. But I wish he would have defended the proposal by Repub Sam Johnson a bit more, in the light of both bi-partisanship and clear common sense.
A new Senate financial plan also includes some tax relief for unemployment benefits, but I’m not sure if it’s all or just a $2400 cap at this point.
Obama DID promise no taxes on unemployment benefits
For individuals who have lost their jobs, Obama would extend
unemployment insurance and suspend taxation of unemployment
payments.
http://public.deloitte.com/media/0163/us_tax_decisionsaheadobama110508.pdf
How will Obama tax plans work in this economy?
Unemployment benefits: No tax on unemployment benefits in 2008 and 2009.
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/11/06/BUS013URIE.DTL
You need to keep your word Mr. President.
October 23, 2008
Obama: ‘I Will Immediately Extend Unemployment Benefits’
“The news that more Americans filed for unemployment benefits this week and that unemployment claims remain near a seven-year high is another urgent reminder of how badly American workers need a change from the disastrous economic policies of the last eight years. While Washington has done nothing to extend unemployment benefits and create new jobs and John McCain has no jobs plan whatsoever, I will immediately extend unemployment benefits, suspend the taxes on those benefits, and jumpstart job creation by giving small businesses emergency loans and tax credits for each new job they create”.
http://briefingroom.thehill.com/2008/10/23/obama-on-rise-in-unemployment-claims-ill-extend-unemployment-insurance-help-small-businesses/
What happened to Obama’s unemployment extension’s and making unemployment benefits nontaxable.
By Calvin from Overland Park, KS – Jan 25th, 2009 at 9:19 pm EST
Also listed in: Kansas Veterans for Obama
Well, before newly elected President Barrack Obama was sworn into office. He had promised to extend unemployment benefits another 13 weeks. Not only that but unemployment benefits were suppose to be tax free. Well after just putting in my weekly claim for unemployment tonight 01/20/09. I thought I would look into this matter to make sure it was documented on the official web site of the Kansas Unemployment web site. It plainly states that there is no federally funded unemployment extension’s available at this time. What? Is this a promise that he has broken right off the bat. Supposedly he was extending the federal unemployment benefits by 13 weeks, and making them all tax free. When I seen that I thought this man is a GOD SEND. But now I wonder? That’s why I voted for the Honorable man. Was his pledge to help the lower middle class, and standard middle class. So I have been looking into this matter. Before he took the oath of Presidency I received an email from MSN stating that what I mentioned above was supposed to take place. During his first months in the Presidency. Now this man made over 500 promises and I expect every single one of them to be kept. Since the hype machine has died down, I begin to wait and wonder. I am a proud veteran, who loved Ronald Reagan. He kept all of his promises to the military during his Presidency. Of course he made no where near the 500 post elections promises that Obama had made. He has allot to live up to. Allot of people were counting on these promises to be kept. Had he made to many? Is it really possible to live up to over 500 promises made during his campaign for the Presidency? Or had we all bought into the HYPE? Well its still early in his term, but I am following his every move. Believe me that if he just promised his way into the important position of the President Of The United States. How can he look a single American in the eye if he bought their vote on a certain promise, and never follows through on that voters promise. That they believed like us all. Do not get me wrong I am not trying to jump all over him. Just get the promises he made be kept. Or at least fought for. Everyone’s eyes and ears are on this President. Especially mine. Lets hope we just was SOLD ON THE HYPE. Yours Truly My Fellow Veterans and Americans. Signed looking for change, to create the promised land. The new country of change HE PROMISED. Currently I still LOVE THE MAN. Again thank you for your valuable time. Looking for a new job in KANSAS. Had my last one 12 years until President Bush ruined our economy. Signed, Mr. C.D.R. Veteran. P.S. May GOD BE WITH OBAMA. AMEN.
http://my.barackobama.com/page/community/post/calvinrose/gGx27h
In regards to Mr. CDR’s comment. First, thank you for your service; you have my respect.
The legislation to extend unemployment is part of the stimulus package. In November, Congress passed a 20 week extension; however, only those states with a three month average of 6% or more unemployment is eligible for the full 20 weeks. The only way the GOP would pass the bill and President Bush would sign the bill into law.
Kansas, as of the last trigger report, had a three month average of 4.9%. You can go to http://atlas.doleta.gov/unemploy/claims_arch.asp to look at the trigger report; click on “Emergency Unemployment Compensation Trigger Notice”. Next, click on the date on the calendar the system displays. The report is updated weekly every Monday.
As for exempting unemployment from taxes, we have this bill and HR 155. The majority of the GOP is against these bills. The Senate did put $2400 to be exempt from taxes for 2009 in the stimulus bill. I suggest you write your Senators and Congressman and tell them to pass HR 155 and S 155. Also, go tow WhiteHouse.gov and send an e-mail to President Obama. The idea of paying income tax on unemployment, while at teh same time banks and corporations are getting bailouts and tax credits is not only unfair, it is disheartening.
Sorry, some inaccuracies there.
First of all, legislation to extend unemployment benefits in the stimulus package is directed ONLY at extending the current program of extended benefits for those still coming down the pipeline of newly unemployed. I.e., instead of cutting of that application deadline in March, the deadline is extended in the new bill til the end of the year. There are absolutely NO provisions for further extensions for the long-term unemployed in the new packages. I’ve read them and they’ve been extensively discussed over on the HR 6867 forum, where most of the people are those of us on this current extended benefits program.
It seems to me even some legislators haven’t read the bills and are touting how much this new stimulus will do for the unemployed, but for those of us on our last legs there will be absolutely no new funds after roughly mid-April, when our tax bills for all these benefits will be due!
As for HR 155 and S.155—HR 155 is a joke, maybe even a typo, since it allows for exclusion of benefits only for tax year AFTER 2008. In order for us to have any benefit before April 15 of 2010, the tax year 2008 has to be included, which it IS in S. 155, not HR 155. I’ve been calling my congressmen in support of another benefits extension for the long-term unemployed and for passage of S. 155, not HR 155.
But it’s actually more likely that the Senate overall version of the stimulus bill will hold sway in this. Currently their version has a provision for exemption of the first $2400 of unemployment benefits. I hope this is changed to total exemption, but it’s better than nothing.
As for an extension for those running out of extended benefits in this miserable job market now, I repeat, there is NO proposed legislation at this time!
01/23/2009
Extensions of Emergency Unemployment Compensation
Current Legislation has provided for a total of 20 weeks of emergency benefits. Due to the high unemployment rate in New York State, we expect an additional 13 weeks will be available February 22, 2009. Check our website weekly for more up to date information.
Since the additional 13-week extension of UI benefits is expected to pay out $270 million statewide, it will amount to an economic impact of approximately $443 million. In the Capital Region alone, the additional 13-week extension will pay out nearly $15 million, resulting in a local economic impact of more than $24 million.
The deadline for filing a new claim for extended unemployment insurance benefits is March 29, 2009. Individuals that exhaust their regular unemployment insurance benefits after that date are not eligible for extended benefits.
It is possible that Congress may extend unemployment insurance benefits again. Workers are encouraged to check the Department of Labor’s web site at www.labor.ny.gov for current information regarding extended unemployment insurance benefits, eligibility rules and instructions on how to apply
MONTGOMERY – Alabama Department of Industrial Relations Director Tom Surtees announced today that unemployed Alabamians are now eligible for an additional 13 weeks of Unemployment Compensation benefits.
Because of the unemployment rate increases over the past three months, federal legislation passed in November 2008 allows for unemployed Alabamians to receive the additional benefits. In November, Alabama qualified for an extension of 20 weeks. The two extensions combined result in an additional 33 weeks of benefits added to the existing 26 weeks of regular benefits.
In order to qualify for this second extension, a state’s three month average unemployment rate must equal or exceed six percent. Alabama’s current three month average is 6.1%.
“Hopefully, this extension will help to alleviate some of the financial burden for those who remain unemployed,” said Surtees. “During such faltering economic times, many workers may feel there is nowhere to turn. Alabama’s Career Centers stand ready to help those workers meet these challenges.”
Approximately 12,000 Alabamians may currently be eligible for the additional benefits. The extension becomes effective February 15, 2009. Claimants who qualify for the additional benefits will need to begin certifying for them on February 22, 2009.
Workers who may qualify will be notified by mail with filing instructions. Current and future claimants who exhaust their regular benefits will automatically be continued on the extended benefits as long as they qualify.
Important Notice About
Emergency Unemployment Compensation
Due to the high unemployment rate in New York State, we expect an additional 13 weeks of federally funded emergency benefits will be available February 22, 2009, for a total of 33 weeks of emergency benefits.
Under current legislation, new claims for Emergency Unemployment Compensation (EUC) can be initiated through the week ending March 29, 2009 and no EUC can be paid for any week that begins after August 30, 2009. However, we also expect the program ending dates to be extended through new legislation. Check our website weekly for updates on additional extensions of emergency benefits and program ending dates.
Individuals who are currently employed should not quit a job to file for EUC benefits. Quitting to collect these benefits will result in disqualification.
Frequently Asked Questions
Who is eligible to receive Emergency Unemployment Compensation (EUC)?
In order to be eligible for Emergency Unemployment Compensation (EUC), claimants must:
Have exhausted their regular unemployment insurance benefits.
Meet basic state eligibility requirements such as being ready, willing and able to work.
Have no rights to regular or extended compensation under any other state or Federal law.
What can I do if I received my 26 weeks of regular benefits and I am still unemployed?
If you have been paid 26 weeks of regular benefits, you may start claiming EUC for the week immediately following your last week of regular benefits by logging in on the Benefits Online Page and clicking on “Claim Weekly Benefits,” or calling our toll-free Tel-Service number. Please note:
EUC cannot be paid for any week in which partial regular UI has already been paid. In that case, EUC would begin the following week.
Under current legislation, individuals must start claiming emergency benefits no later than for week ending March 29, 2009.
What can I do if I received 20 weeks of emergency benefits and I am still unemployed?
Due to the high unemployment rate in New York State, we expect an additional 13 weeks of emergency benefits will be available February 22, 2009, for a total of 33 weeks of emergency benefits. Check our website weekly for updates and instructions on when to start claiming these weekly benefits.
What is my weekly benefit rate for emergency benefits?
The weekly benefit amount paid for emergency benefits is the same amount you received for regular benefits.
How are emergency benefits paid?
The Department of Labor now pays benefits either by Direct Deposit (into your personal checking account) or on a Direct Payment Card (debit card) account. Emergency benefits will be paid with the same method used on your previous claim.
Why are there breaks in my payments of emergency benefits?
There may be breaks in your payments of emergency benefits, since none of the approved extensions are retroactive.
The first approved extension, for 13 weeks of emergency benefits, was effective on week ending July 13, 2008.
The second approved extension, for 7 weeks of emergency benefits, was effective on week ending November 30, 2008. These benefits were not retroactive for individuals who exhausted the first 13 weeks of emergency benefits prior to November 23, 2008.
Alabama extends unemployment benefitsJan 30 2009 10:49AM EST
Alabama’s unemployed workers will now be eligible for an additional 13 weeks of compensation benefits, according to the Alabama Department of Industrial Relations.
The surge in the unemployment rate here – due to massive layoffs at companies grappling with the ailing economy – allows the state to extend its unemployment payments to its affected work force, the department said.
To qualify, a state’s three-month average unemployment rate must be at least 6 percent. Alabama’s average is currently 6.1.
The state’s overall unemployment rate jumped to 6.7 percent, a dramatic increase from November’s revised 6 percent. The state’s jobless rate is still lower than the national rate of 7.2 percent, but has steadily increased in recent months from 5.6 percent in October and 3.6 percent a year ago.
So far, Alabama has qualified for two extensions. In all, 33 weeks of benefits have been added to the existing 26 weeks of benefits unemployed workers normally receive.
“Hopefully, this extension will help to alleviate some of the financial burden for those who remain unemployed,” said Alabama Department of Industrial Relations Director Tom Surtees. “During such faltering economic times, many workers may feel there is nowhere to turn. Alabama’s Career Centers stand ready to help those workers meet these challenges.”
As of late, about 12,000 Alabamians are likely eligible for the additional benefits. The extension will go into effect on Feb. 15.
For more information visit the agency’s Web site at www.dir.alabama.gov
Unemployment Extension Legislation Update
January 8, 2009:There has been quite a bit of confusion about what extended unemployment benefits workers qualify for. UnemployedWorkers.org has a good explanation of how the extended benefits work and how to figure out how many weeks you are entitled to:
All States: Workers who exhausted the 13 weeks of unemployment benefits before the passage of the November legislation are eligible for an existing 7 weeks of extended benefits. Total of 20 weeks of benefits.
High Unemployment States: Workers who live in a state with an unemployment rate of 6% or more are entitled to an additional 13 weeks of benefits. Total of 33 weeks of benefits.
Understanding the Two Tiers of Extended Benefits (January 2, 2009)
There have been many questions about the number of weeks provided by Congress through Unemployment Compensation Extension Act of 2008 passed on November 21, 2008. This Q and A attempts to answer key questions about the two tiers of benefits.
How many weeks of benefits am I entitled to?
Workers in low unemployment states are eligible for a total of 20 weeks of benefits, while workers in high unemployment states are eligible for 33 weeks of benefits. High unemployment is defined as a state unemployment rate above 6% for a three month period.
What is the difference between first tier and second tier benefits?
In all 50 states, those who exhausted the 13 weeks of EUC benefits before the passage of the new law in November are now eligible for an existing 7 weeks of extended benefits. These are called additional first tier benefits.
If they live in a state with an unemployment rate of 6 percent or above (over a three month period), workers are eligible for an additional 13 weeks of second tier benefits.
My state already has an unemployment rate above 6 percent. Why I am being told that I only qualify for 7 weeks of benefits?
Workers in high unemployment states are being informed that they are eligible for an additional 7 weeks of benefits, but they expect to be told that they are eligble for an additional 20 weeks of benefits.
The reason is that workers’ must first run out of their 7 weeks of additional first tier benefits to be eligible for the 13 weeks of second tier benefits. Workers can only collect the second 13 weeks of benefits if their state is in “triggered on” when the worker exhausts their first tier benefits. (When states have the required unemployment rate, they are considered to be “triggered on” to the additional second tier of benefits.) Thus workers who exhausted the first extension before 11/21/2008 were only technically eligible for the additional 7 weeks when they first reapplied.
How can workers know whether they’ll get a second 13 weeks of benefits?
Workers can find out if there state meets the 6% threshold by checking the following website. The current list of states can be found at http://ows.doleta.gov/unemploy/euc_trigger/2008/euc_122808.html
Workers who qualified for 7 weeks of benefits starting on November 23, 2008 can rest assured that they will indeed receive a second 13 weeks of benefits if they can’t find work after receving their additional first tier benefits AND there state is listed in the notice above.
Why? States are required to remain in “on” status for at least 13 weeks.1 Thus, workers receiving 7 weeks of additonal first tier benefits in states considered high unemployment today can rest assured that their state will still be considered high unemployment if if they have received their first tier of benefits consecutively and run out in late January or early February.
That’s because states would still fall within the 13 week minimum “on” period window. In any case states will remain triggered on if their unemployment rate stays above 6 percent. With the national unemployment rate rising, states are unlikely to trigger off any time soon.
Why didn’t states just tell workers in high unemployment states that they are eligible for 20 weeks of benefits?
In the rare occurence that a worker ran out of their additional 7 weeks of benefits at a time when a state had triggered off they would not receive a second 13 week of benefits. For example, if a worker has temporary employment and stretches out their 7 weeks over a long period of time, their state might be triggered off by the time they were to qualify for second tier benefits. For that reason, states can only guarantee the jobless that they are eligible for 7 weeks of additional first tier benefits.
I am about to run out of my state benefits in January, how many weeks can I expect to receive?
You are guaranteed to recieve up to 20 weeks of first tier EUC benefits. If you remain unemployed after receiving 20 weeks of extended benefits, and at that time you live in a high unemployment state that is triggered on to the second tier benefits, you can receive a second tier of up to 13 weeks of benefits. This is a total of 33 weeks of benefits. The updated trigger notices are available at http://ows.doleta.gov/unemploy/claims_arch.asp by selecting “Emergency Unemployment Compensation Trigger Notices.”
This bill is still alive and well. Contact Snowe and show your support.
Check out this forum for the unemployed.
http://unemployed-friends.forumotion.com
I emailed Senator Snowe month or so ago regarding this as we need this bill desparately to pass for all of us on unemployment insurance. No way I can pay taxes next April from ’09 earnings. Not sure if McHue also is in on this or not, but says 40 co-sponsors on site. Lets keep our fingers crossed and do what we can to help them pass this.
Please pass this ASAP! The $2,400 currently in law is kind of a joke. What was the point of that? The extra $25 a week is just getting eaten up by taxes.
Ronald Reagan started this tax….he is dead and so is that way of thinking. Pass this bill!! The concept of taxing the unemployed is unconsionable.
It’s pointless to pay taxes on unemployment in NY because we don’t get much, we are among the lowest paid unemployment states..