3 Things You Need To Know About the Economic Stimulus Package


Photo by FaceMePLS

President Obama signed the economic stimulus package into law last week.  Whatever you think of it, it’s important to know that there are a few key changes for people who are unemployed.  If you’ve lost your job, or think you might soon, here’s what you need to know:

  1. You’re getting a raise.  Your unemployment check will be going up by $25.  That’s probably not going to rock anyone’s world, but every little bit helps.  Most people will also be eligible for an extension well beyond the usual 26 weeks of payments; check your state website to see how this will work for you.
  2. You’re not paying taxes. Unemployment benefits are taxable.  In 2009, though, the first $2,400 of benefits will be tax free.   After that, you’ll still have to pay income tax on the unemployment benefits you receive, so plan accordingly.
  3. Your COBRA payments are about to be much cheaper. In most cases, if you lose your job, your employer must allow you to continue your health insurance for up to 18 months.  The catch is that you have to pay the full amount (not just the premiums you pay now, but the part your employer pays as well).  This can be crushingly expensive.  As a result of the new law, if your job is eliminated between September 1, 2008 and December 31, 2009, the government will subsidize 65% of your COBRA payment, for up to nine months.  You’re eligible if you don’t make too much money ($125,000/year for individuals, or $250,000/year for married filing jointly, in the year in which you receive the subsidy).  The subsidy goes directly to your employer, not you, so you don’t have to deal with the government to get your money-just pay your 35% share.  Contact your former company’s HR department to see how this works for you, even if you declined coverage last fall.  Normally, you don’t get to change your mind once you turn down COBRA, but now you get a second chance to elect coverage and receive this subsidy.  That’s a good deal.

As always, thanks to Anna at ABDPBT, who started the Fighting Listlessness on Mondays trend in blogging. Anna’s blog isn’t about jobhunting; it’s about other, way more interesting things. I highly recommend it.
listbutton

Get more stuff like this

Don't miss a thing. Subscribe to new posts via email.

2 Responses

  1. abdpbt 6 years ago
  2. Eliz 6 years ago
Web Statistics
2604811407_0a9328103f_o
BREAKING: Clue Wagon is Now a Dating Website
4482942978_c4347b15fe_z
Ancestor Hate Mail
Ancestry DDoS attack
8 Theories on the REAL Reason for the Ancestry.com Outage
8409353231_68d3062177_z
Confession: I’m a GeneaFreak in My Sleep
4400388995_af65ba1fae_z
Can We Stop Calling Grandma a Whore?
Ancestry DDoS attack
8 Theories on the REAL Reason for the Ancestry.com Outage
5027161428_f762af4ce5_z
Why Don’t People Post Public Family Trees?
3366720659_b746789dfd_z
Confession: I Hate Free Genealogy Stuff
Family History Library Visitor Tips
9 Things You Need To Know Before You Go to RootsTech/FGS
1594411528_1512b1aad5_z
How to Stop Spammers From Stealing Your Facebook Identity
nelson-scheiber-wedding-minneapolis
Guerrilla Genealogy: Hunting Down Wedding Guests
4212380812_a008fbbf06_z
Dead People, Dead People, Dead People, SQUIRREL!
Mad-Men-DNA-Genealogy
How Mad Men Will Really End—With a Shaky Leaf
7464252264_a12645770a_k
Why Your DNA Test Results Are Wrong
Horrified Senior Woman
Clue: Your Ancestry Username and Your Pee-Oh-R-N Username Should Not Be The Same
4400388995_af65ba1fae_z
Can We Stop Calling Grandma a Whore?
7512877940_2720e3be12_z
Want a Full Refund on Your NewspaperArchive.com Subscription? Just Ask About Their Charity.
3366720659_b746789dfd_z
Confession: I Hate Free Genealogy Stuff
250436252_11e6b00028_z
O Come, All Ye Drama Llamas
6587951925_169aa0d54f_z
Is Making Money From Your Blog Still a Thing?
4482942978_c4347b15fe_z
Ancestor Hate Mail
1594411528_1512b1aad5_z
How to Stop Spammers From Stealing Your Facebook Identity
Ancestry DDoS attack
8 Theories on the REAL Reason for the Ancestry.com Outage
7512877940_2720e3be12_z
Want a Full Refund on Your NewspaperArchive.com Subscription? Just Ask About Their Charity.