Ask Kim
What You Need to Know About Unemployment Benefits
Here's how you qualify and start collecting checks.
By Kimberly Lankford, Contributing Editor, Kiplinger's Personal Finance
February 11, 2009
I was laid off from my job and am wondering whether I can receive unemployment benefits. How do I sign up for them?
To qualify for unemployment benefits, you must be out of work through no fault of your own and be actively looking for a job. File for benefits as soon as you lose your job so you don't miss out on any money.
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The size of your weekly benefit varies depending on the state and your previous income (the higher your income, the higher your benefit). In Maryland, for example, the weekly benefit ranges from $25 to $380. You apply for benefits in the state where you worked, even if you live in another state.
If you qualify, you normally receive your first check within three weeks of applying. But these are not normal times. More than 4.8 million people were collecting unemployment benefits in mid January, the highest number since the Department of Labor started keeping track of these figures in 1967.
State unemployment offices have been inundated with requests for payments, and it can be difficult to get through on the phone. Pennsylvania, for example, expanded its unemployment office's call-center hours (it now accepts calls on Sunday) and recommends calling on certain days based on your Social Security number. (Some state unemployment offices are adding staff -- making them great places to find work in this economy.)
To speed up the process, most states recommend that people file online rather than over the phone or in person. Use this unemployment benefits map for links to your state agency and its online claim form. Your state's unemployment-benefits Web page will also provide details on how to apply for benefits, how to file an appeal and what you need to do to maintain your eligibility.
Keep in mind that unemployment benefits are currently taxable, but taxes are not automatically withheld. You can elect to have taxes withheld from your checks, or you can set aside extra money so you aren't surprised by the tax bill later. And keep an eye on your state's unemployment-benefits Web site for updates -- several provisions in the federal stimulus bill could affect the length, terms and taxability of unemployment benefits.
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Reader Comments (6)
Posted by: Jill at 02/22/2009 02:22:29 PM
'Ask Kim' is very helpful and to the point. I've read several articles just in my first visit to the website and will return for more reading.
Posted by: Keeley A. Malone at 01/30/2010 10:52:00 PM
I applied for unemployment benefits in Washington State on 12/10/09 and have yet to receive my benefits. How long is it taking individuals to receive their benefits on average?
Posted by: dijana at 05/09/2010 01:45:29 PM
Hi...I have one question? My mother in law was on layoff almost one year and than they called her back...nut owners cut her money ($1.50 ) and my question Is this normal or Is this discrimination because they cut only for her money ? thank you
Posted by: pacmann074 at 05/11/2010 03:58:19 PM
I was getting benefits then i was told the employer is disputing it. I thought they only have 10 days from the time i file to do so can they do this and why?
Posted by: eric collier at 06/26/2010 11:10:50 AM
my unempolment benfits are late...i need to know how...it works when your money has been posted... can it be posted on the weekend?
Posted by: TT at 08/13/2010 03:10:38 AM
Hi! I graduated in May this year and have yet to find a job thus far. Can I file for unemployment benefits? I have never been employed before. My parents paid for all my college expenses. Please advise on the next steps. Thank you.