Posts Tagged ‘laid off’

How To File Taxes If Laid Off

Wednesday, August 19th, 2009

What should you do or plan to do if you are out of work and have to file taxes?

The first order of business is to see if you hit the threshold for having to file.  If you were laid off in 2009, the chances are that you made some money and you may want to try to file to see if you can get back some of the taxes that you paid in the form of a refund.

Did you get a lump sum severance package?  If so, were enough taxes taken out of it?  If not, you should think about putting aside some of the money now or better yet pay your quarterly taxes with it so you don’t have a tax liability and possible penalty later on.  If you are hungry and trying to just keep a roof over your head I understand that you have other more immediate priorities but I wanted to just gently remind you in case things get better for you and you end up back on your feet sooner than you think.

The Fed and the respective State governments will work with you if you owe current taxes and they will try to make things easier if you owe back taxes if you approach them rather than having to wait for them to come to you.  Remember that the govt at all levels, Fed and States, need cash.  We are in a Depression and they need to make up for lost income as much as you and I do.  Everybody is trying to become profitable again.

Even if April 2010 is still some time away, it is important to start planning now while there is still time and the ability to mitigate any tax damage that might happen between now and then.

If you had money taken out for taxes for the Fed but not enough because of the Make Work Pay Program (remember that back in Feb 09?) where the Fed had employers take out less in withholding you will want to double check with the tax tables (available at the IRS website or check with me via post or email or your tax person) to estimate what kind of tax situation you might be facing.

For your review from the IRS, here are some tables to ball park your tax liability.  Please double check with your tax pro and the IRS in case of any questions and verify that the numbers we are using and you are checking with are right.
2009 federal tax tables are divided into four sections based on your filing status: single, married filing jointly, married filling separately, head of household.

Filing status: SINGLE
Use this schedule to figure out your tax if you are filing as single.

10% on income between $0 and $8,350
15% on the income between $8,350 and $33,950; plus $835.50
25% on the income between $33,950 and $82,250; plus $4,675.00
28% on the income between $82,250 and $171,550; plus $16,750.00
33% on the income between $171,550 and $372,950; plus $41,754.00
35% on the income over $372,950; plus $109,216.00
(Tax Rate Schedule X)

Filing status: MARRIED FILING JOINTLY
Use this schedule to figure out your tax if you are filing as married filing jointly.

10% on the income between $0 and $16,700
15% on the income between $16,700 and $67,900; plus $1,670.00
25% on the income between $67,900 and $137,050; plus $9,350.00
28% on the income between $137,050 and $208,850; plus $26,637.50
33% on the income between $208,850 and $372,950; plus $46,741.50
35% on the income over $372,950; plus $100,894.50
(Tax Rate Schedule Y-1)

Filing status: MARRIED FILING SEPARATELY
Use this schedule to figure out your tax if you are filing as married filing separately.

10% on the income between $0 and $8,350
15% on the income between $8,350 and $33,950; plus $835.00
25% on the income between $33,950 and $68,525; plus $4,675.00
28% on the income between $68,525 and $104,425; plus $13,318.75
33% on the income between $104,425 and $186,475; plus $23,370.75
35% on the income over $186,475; plus $50,447.25
(Tax Rate Schedule Y-2)

Filing status: HEAD OF HOUSEHOLD
Use this schedule to figure out your tax if you are filing as head of household.

10% on the income between $0 and $11,950
15% on the income between $11,950 and $45,500; plus $1,195.00
25% on the income between $45,500 and $117,450; plus $6,227.50
28% on the income between $117,450 and $190,200; plus $24,215.00
33% on the income between $190,200 and $372,950; plus $44,585.00
35% on the income over $372,950; plus $104,892.50
(Tax Rate Schedule Z)

Again, the tables are ballpark.  You should have a tax pro work with you or take some time to go through the details yourself if you are tax work inclined.  There are other situations where if you are making a lot of interest income that you still may required to file and other situations where even though you didn’t hit the dollar levels, you still may have to or want to file.

There is a lot of stuff working its way through Congress and tax changes will no doubt be finalized between Oct and Feb of this and next year respectively.  The State changes you will need to wait for as well since a lot of States do follow the Fed changes.  Where I can I will post what comes up for the Fed and for California since I have a direct interest in it.  I do multi-state returns so if you have a question or issue please e-mail or post me and I will do what I can to help you.

Hope you will be doing better in the months to come.  Please make sure that you have a roof over your and your loved ones heads, food on the table and clothes on your backs.

Aug 19 2009

 

Also, please  don’t quite go anywhere yet.  Having some tax issues or tax questions?  Any problems with trying to make it through the financial Depression we are in that is making you depressed?  Please read on.

I am expanding  my practice and taking on new tax clients.  If you are interested in having somebody who is a successful businessman and tax professional with integrity review your returns discretely and see if your tax guy or gal is doing a good or goofy job, please drop me an email or post a comment with your contact information and time.

I have experience in international business, small businesses, partnerships, multi-state tax returns (they can get complicated) and anything else you can probably think of.

I also do business consulting and have ran several businesses (still running a few) myself so you are in good hands.

If you are looking for a day job, part time work, suggestions for saving money or investing, please check out my book, Practical Money Making, that is listed right after his paragraph in this very post. There are some great suggestions and ways to survive the Depression we are in.

Practical Money Making-Surviving Recession, Layoffs, Credit Problems, Generating Passive Income Streams, Working Full Time or Part Time and Retirement

Interested in any of my books? You may want to make a stop over here. Please click through to purchase my books and some other interesting items that actually ARE on sale.

Have you read my book, “Bad Tax Idea, Good Tax Idea“? Please order it today. The tips inside can save you hundreds if not thousands of dollars! Tax planning should be done year round and not just two weeks into January or later.

Part of all the proceeds from the sales of that book go to Rett Syndrome research. One girl is born with Rett Syndrome worldwide every fifteen minutes. My daughter Arianna has Rett.  Thanks for your support.

Kim Isaac Greenblatt

How To File Taxes If Laid Off

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Reminder For Those Recently Laid Off

Tuesday, March 31st, 2009

I have been getting emails from a lot more people who have been laid off and are looking for work.  I posted back in July 2008 this post and it is a small section from part of my book on Practical Money Making.  Keep in mind that the suggestions I made back there are amplified in some respects because there are so many other people out there who are out of work.

My amendments to the passage and other blogs are:

1.  Think about moving to other regions of the United States for work.  The Midwest has been hiring in some places (though others have been like ghost towns) and even parts of Southern California have been hiring (though more places statistically have been laying people off).  The change may not have to be permanent.  If somebody offers you some contract work and the numbers make sense to move while still making mortgage payments in another state, please go for it!

2.  Get anything that can provide some income no matter what it is if you can handle it.  This isn’t the time for pride.  We are in a Depression and you need to be working.  In a year or two things may be different but for now you need to be putting bread on the table and paying the rent or mortgage bills.

3.  Meditate or do something to stay healthy and centered.  Get a regular routine going and stick with it.  Don’t get into the habit of being sloppy and spending all day playing World of Warcraft or texting your girl friends.

4.  Keep sending out resumes.  Keep looking for business connections to help you find employment.

5.  Remember your friends and family.  Work with them for support and cooperation and eventually things will work themselves out.  A lot of them may be looking to you to see how you react and you don’t have to be the Rock of Gibraltor or Superman but you can be honest with them.  If you are scared, that is normal but you can save the screaming and crying freakouts for when you are by yourself.  Set a good example of how to cope without drinking or drugs by showing your family how you react to being laid off.  Hopefully, it will be only a temporary situation anyways!

 Peace and good luck to all of us!

 March 31 2009

Interested in any of my books?  You may want to make a stop over  here. Please click through to purchase my books and some other interesting items that actually ARE on sale.   Have you read my book, “Bad Tax Idea, Good Tax”?   Please order it today.  The tips inside can save you hundreds if not thousands of dollars!

 If you are looking for a day job, part time work, suggestions for saving money or investing, please check out my book listed below.  Part of all the proceeds from the sales of that book  go  to Rett Syndrome research.  One girl is born with Rett Syndrome worldwide every fifteen minutes.   My daughter Arianna has Rett Syndrome and we are working to do all we can to make her life easier and find a cure in her lifetime.  Boys born with the Rett gene generally die at birth.

  Practical Money Making-Surviving Recession, Layoffs, Credit Problems, Generating Passive Income Streams, Working Full Time or Part Time and Retirement

Kim Isaac Greenblatt

Reminder For Those Recently Laid Off

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Economic Stimulus Package Looks To Be On Tuesday

Monday, February 9th, 2009

The economic package for stimulus looks to be still a work-in-process in the Senate.  People were expecting issues to be banged out so the package could be live on Monday but it is looking like Tuesday will be the day.  We are talking around 827 billion dollars, a number that  is very hard to wrap one’s head around.  Even harder is trying to see how quickly this money will actually make a change to the millions of people that are out of work, underemployed and those on the verge of being laid off.  People are responding to the supply destruction of jobs by trying to save money.  I just don’t get it.  For a lot of the large companies that are laying off people and shuttering manufacturing plants in some areas, how are they going to make money?  In the case of multi-national giants like Intel with billions of dollars of cash on hand, they can sit it out – but only for so long.

What will happen six months to a year from now at earnings time?  The people who are laid off now will not be buying things over the next year if there is no work.  They will be having a hard time paying the mortgages, making rental payments, getting food and warm clothing.   There will be less room for buying iPods – no matter what people say about always finding money for things that they want.

I see it with tax clients who are cutting corners or who have been laid off.  There are tough times still ahead and not having my crystal ball working at 100% I can’t tell you when the bad times will be bottomed out.  For the short term, I expect that the stock market will still pop when the stimulus package comes out but I don’t see anything to indicate that it may maintain any kind of growth. 

I hope I am wrong.  In the meantime, hang onto your cash and make sure that your bills are paid if you can.  Utility companies are cutting power if clients miss a couple of payments in some localities.  Not a good thing in cold or wet climates.

As of now for my Californian friends, no word on any changes to the dispostion of California Tax Refund checks.  Everything is still on hold until the end of February and at that point who knows if it will be checks, direct deposit, warrants or credit to next year’s tax payments.

Be safe and healthy!

 

Interested in any of my books?  You may want to make a stop over  here. Please click through to purchase my books and some other interesting items that actually ARE on sale. If you like poker, Heroes (the TV series), comic books, Watchmen, etc, there may be some fast links to get you to what you are looking for.  Have you read my book, “Bad Tax Idea, Good Tax”?   Please order it today.  The tips inside can save you hundreds if not thousands of dollars!

 If you are looking for a day job, part time work, suggestions for saving money or investing, please check out my book listed below.  Part of all the proceeds from the sales of that book  go  to Rett Syndrome research.  One girl is born with Rett Syndrome worldwide every fifteen minutes.   My daughter Arianna has Rett Syndrome and we are working to do all we can to make her life easier and find a cure in her lifetime.  Boys born with the Rett gene generally die at birth.

  Practical Money Making-Surviving Recession, Layoffs, Credit Problems, Generating Passive Income Streams, Working Full Time or Part Time and Retirement

 Kim Isaac Greenblatt

 

Economic Stimulus Package Looks To Be On Tuesday

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No Job or Laid Off

Wednesday, July 23rd, 2008

No Job

You may have been laid off.  Maybe you have quit an intolerable position.  The important thing to do is to start working on a plan to get you back in some sort of position where you can get an income stream going.

First, if you have been recently laid off, take an inventory of what you have coming to you.  Are you still getting some severance?  Can you bridge your medical benefits over?  Did you make sure that your retirement account, your 401K or pension plan is secure until you can take some time to decide what to do with it?

Make sure that they are not cashing out your 401K.  If they are, make sure that you roll it over into an IRA – you will have generally up to 60 day to do it.  If you don’t it will be considered an early disbursement and you will be penalized and taxed. 

If you have been laid off you will have to endure an exit interview.  I wouldn’t waste time saying what was wrong with the company, etc.  You will need to use them as a reference.  It doesn’t pay to burn any bridges. 

By the way, I wouldn’t worry about any bad references.  A lot of people are getting laid off and it is sadly pretty commonplace.  Usually by law, a reference check will be that you worked for the company, were employed there for however many years and that is that.  For personal references pick people you can trust – you don’t want any nasty surprises when a prospective employer asks “Would you work with this person again?”
You also will be in a state of shock.  Different people deal with stress differently but there will be some shock whether you are aware of it or not.  It may hit you right away, it may not.  However you react is normal.

If you start throwing things around the house and breaking your TV, that is not normal.  Go for a walk or better yet run and get some of that anger out of your system.

If you need to contact a psychologist, counselor or there is one offered as part of your severance package – take the opportunity.  It will help you get back on your feet faster.

Take an inventory of your financial assets and liabilities.  If you have a financial savings that isn’t in a retirement account, more power to you!  You are ahead of most people.  That means you have some time and leeway in trying to plan your next step.

If you can, file for your unemployment as soon as possible.  The reason I say that is that it takes time for unemployment to process your application (they get a lot of them) and it may be several weeks till you get your first check.  It doesn’t hurt to get the ball rolling.

For the interim, if you have a family, plan on making some cut backs (if you can).  Are there things you can start eliminating that you can always do later on?

For example, if you buy a lot of fast food, consider going to eat out only once or twice a week and load up on frozen food or fresh fruit and vegetables.  I know that fast food sometimes seems cheaper and easier but in the long run it will only make you fatter and cost you money.

Buy coffee or tea to make at home instead of going to Starbucks.  Start drinking generic sodas instead of Coke or Pepsi.  Better yet cut out junk food altogether and get on a lean and mean diet for you and your family if you can.

Get your attitude focused on getting a new job.  Personally, I don’t like waiting to “get it together”.  If I know the direction I want to go, in this case, getting a new job, I start researching the internet, calling friends, calling relatives, doing whatever I can to get back employed.  I have a family to feed.  You may too!

If you have the luxury of time and money, you may want to use this as an opportunity to change careers.  Make sure you understand though that the starting salary of your new career may be substantially lower than what you were use to making.

Make sure that it you have talked it over with your spouse, significant other or loved ones.    If it involves a significant lifestyle change for the whole family, they need to be in on it.

Speaking of lifestyle changes, do you have any services that you don’t need while you are laid off?  Maybe you need to cancel cable or satellite for a few weeks or months to save some money.  Better to pay the rent or mortgage than to be watching the basketball game on satellite in the alley off of the street.

You want to try and get employed as soon as possible.  Set some realistic time lines and if worse comes to worse, take some job – any job – that will start bringing some income in.
I am not saying you should get a minimum wage job if it will end up exhausting you and you will still be losing money each month.  I am saying that you need to be practical.

If you have been laid off for awhile – get your edge back!  You need to get back to work and the longer you are sitting around the harder it is getting to get back to work.
Right?

So, you want to keep busy and avoid being lazy.

I would spend 8-10 hours a day working on resumes, calling companies, going to job fairs.  Whatever it would take.

If you don’t have web access, get it.  Look for free web access (though I wouldn’t send any personal information from a free site personally) at your local library, internet hot zones or neighbor’s house (one you can trust).  There are tons of ways to keep busy and you will need to write great cover letters and great resumes to get noticed in the crowd.  I suggest you keep calling friends,  head hunters, in fact, call stay in contact with whoever you think can help you land a job.

Start a website or a blog about what you are doing or what you want to do.  Become an authority in your field and you will be pleasantly surprised.

If you hustle, your downtime between jobs will be small and you will be employed in no time.

Google job postings.  As of the writing of this book, there are sites like dice, monster, and craigslist that have postings every day in all sorts of jobs.

Take advantage of this and dive in.

It will also keep you busy and sharp.

I keep thinking of when my wife Sharren and I would take Jacob (my son) on auditions for acting.  You need to be ready and be prepared for a lot of rejection.  Get a thick skin.

By the way keep your suit or dress pressed and ready.  In case you get a call that you need to be at an interview right away – you can go in.

If you are over 50 (heck if you are over 35) and have gray hair, feel free to color it.  Wear clothing that shows that you are the person ready to go to work and hit the ground running.  This is a good idea regardless of whether you are a male or a female.

Show that you are a professional.  Get to the interview early so they will see that you are responsible.

You will get the job.  If not this one, the next one!  Let us now move out of survival mode briefly into more practical money making ideas.

Questions or Comments?  Please post here!

Kim Greenblatt

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