I have been on unemployment for 9 months out of this year. I did not have any taxes withheld, state or federal, I have been working now since I ended my unemployment, but I just realized that the place I am working messed up and did not take any federal taxes out either. They are taking state but what do I do when I file my taxes now? I have two dependants I claim, but will I have to pay in taxes?

Hello c:

Unemployment benefits are taxable. If your employer forgot to withhold taxes that's not going to help either. But, IF you own any taxes, you won't have to pay them till April 15.

I'd complete my tax return on January 1, and if it determines that you're going to owe, you'll have three and a half months to save.

excon

I do not pay taxes on anything, I rent my home and I work a normal job, the problem is if the taxes were not taken will I have to pay in at the end of the year when I file my income.

Hello again, candi:

When they take taxes out of your check, your taxes aren't PAID. They're just withheld, so that when you do your tax return, you won't owe a bunch of money.

You didn't have any potential taxes withheld, so you MIGHT owe some when you fill out your return. You also MAY not owe taxes. I don't know. I'm just saying that IF you owe taxes because your employer fouled up, it'll be easier on you to do it the way I'm suggesting.

excon

Given the fact that you were unemployed for so long and assuming that at least ONE of your dependents is under age 18, I suspect you will qualify for the Earned Income Credit.

If so, then it is likely you will owe ZERO federal income tax and probably will get a refund due to the EIC.