No, it is optional, You can avoid a big lump-sum tax bill on April 15 by paying quarterly estimated taxes on your unemployment income. A new legislative bill called the "JOBLESS STUB 2009 TAX FREE ACT" (STUB meaning Stop Taxing Unemployment Benefits)is being launched. The web site at Unemployment Gone Mad serves a community of activists and supporters and the bill plan proposal makes all Unemployment Benefits received in 2009 tax free, not just the current IRS $2400 deduction. If the bill passes it will change everthing so stay tuned in for updates
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