Most United States taxpayers are legally obligated to file a Federal tax return, even if they do not owe any taxes. Some states also require residents to file state tax returns, and some localities or cities also require residents to file tax returns. Requirements vary from state to state regarding state and local taxes, therefore residents should consult with their state and local revenue department to determine what is required for the area in which they live. Arizona is one of the states that does require a state tax return to be filed by most taxpayers.
Employment income and taxes paid are generally reported to the Internal Revenue Service and the taxpayer via what is known as a W-2 form. Income and taxes paid from Unemployment Insurance Benefits are reported via what is known as a form 1099-G. Arizona began mailing out these forms to unemployed residents of Arizona beginning January 13th; and all of them should be processed and mailed by January 31st, 2012. Arizona residents may find the state and federal Employer ID numbers at this link; and the amount of benefits paid in 2011 along with the amount of federal and state taxes withheld will be available online at the end of January.
A tax code provision that exempted the first $2400 in unemployment insurance benefits from federal taxes was not renewed by Congress; therefore all unemployment benefits received in 2011 are taxable. However, job seekers may have the ability to deduct job search expenses from their taxes.
Many United States taxpayers are eligible to file electronically for free, which can speed the processing of any refund due significantly. To determine whether you are eligible for Free File you can visit the Internal Revenue Service website. Most services that assist taxpayers with free electronic filing only do Federal returns for free. Electronic filing of state taxes is usually not free. For example, H&R Block, one of the best known tax services companies, will file the federal return for free via online software, but charge a separate fee to file state tax returns. However, one company that will file both federal and state tax returns for free is TaxHawk.
Taxpayers may also use tax software programs such as TurboTax to file their taxes electronically.
Most of these programs also give the tax payer the option of printing and mailing their tax returns to the IRS. An important factor to consider is that a more complicated return may not be free. Assistance with filing and advice on more complicated tax returns and deductions may carry a fee. H&R Block, for example, states fees directly on the front page of their website for more complex federal tax returns.
Any taxpayer who is not sure about a deduction or tax obligation should not guess or ignore the issue. There are many sources for free, discounted or inexpensive tax advice. Major tax advisers charge as little as $9.95 for advice on a specific tax topic; and the IRS offers a number of publications on a variety of tax topics at no charge. Taxpayers may also contact local IRS offices for tax assistance; and in addition may also be able to obtain many of the official IRS forms at their local library. The IRS Volunteer Income Tax Assistance Program offers free tax assistance for those who qualify; with special assistance to the elderly and members of the military. In addition, a number of websites; for example, WebTaxCenter, also offer taxpayers assistance with filing returns and advice. Taxpayers may also be able to obtain assistance from local unemployment offices or volunteer groups.
Jobless? You still owe income tax
Unemployment Assistance in Arizona may be located here.
Unemployed workers in other states may locate their unemployment offices through Career One Stop Locator.
Arizona Department of Revenue Official Website
Internal Revenue Service Official Website
Arizona UI Payment Information for Calendar Year 2011
Internal Revenue Service Tax Information for Individuals
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