IRS Tax Center to Assist Unemployed Taxpayers
The “What Ifs” of an Economic Downturn
The Internal Revenue Service recognizes that many people may be having difficult times financially. There can be a tax impact to events such as job loss, debt forgiveness or tapping a retirement fund. If your income decreased, you may be newly eligible for certain tax credits, such as the Earned Income Tax Credit.
Publications to assist unemployed taxpayers
Publication 4128 , Tax Impact of Job Loss
Publication 4128(SP), Tax Impact of Job Loss (Spanish version)
Publication 4763, Job Related Questions During an Economic Downturn
Publication 4763(SP), Job Related Questions During an Economic Downturn (Spanish version)
Assistance with filing and paying taxes If you have troubles paying your tax bill, contact the IRS immediately. There are steps we can take to help ease the burden. You should file a tax return even if you are unable to pay so you can avoid additional penalties.
Free Tax Help
Publication 1546, The Taxpayer Advocate Service at the IRS – How to Get Help with Unresolved Tax Problems
Payment Plans, Installment Agreements
Offers in Compromise
IRS Help for Financially Distressed Taxpayers
Starting your own business
Some taxpayers may see unemployment as an opportunity to start their own businesses.
Starting a Business
Self-Employed Individuals Tax Center
Small Business Tax Workshops Learn the basics by taking a free Virtual Small Business Tax Workshop.
Business.gov Business.gov guides you through the maze of government rules and regulations and provides access to services and resources to help you start, grow, and succeed in business.
Health insurance COBRA Health Insurance
Workers who lose their jobs may qualify for a 65% reduction in health insurance premiums for up to 15 months.
Health Coverage Tax Credit – Trade-affected workers and PBGC payees receive an 80% credit for health insurance premiums.
Other Resources
Publication 908, Bankruptcy Tax Guide
Canceled Debt – Is it Taxable or Not?
Publication 4705, Overview: Mortgage Debt Forgiveness
Publication 4705(SP), Overview: Mortgage Debt Forgiveness (Spanish version)
Bartering Income Bartering for goods or services? Know the rules.
