American Morning

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April 8th, 2009
12:00 PM ET

Broke, unemployed, and you owe the IRS

From CNN’s Sarah Hagen

This year tax attorneys are expecting an increased number of people will wait until after the April 15th deadline, to file their taxes. An estimated 81-100 million people have not yet filed, according to Roni Deutch, the author of "The Tax Lady's Guide To Beating the IRS". Only 70 million people had filed their taxes as of March 15th, according to Deutch.

Anyone can apply for a six-month extension (Form 4868). According to Deutch, in a bad economy, individuals will most likely owe the IRS and won't be able to afford their taxes. Tax attorneys are expecting a rise in the number of automatic six-month extensions.

Hypothetically, you're broke, you're unemployed and you owe the IRS. Well, there are a few opportunities to save some money. President Obama's new administration is working with the IRS to ease the burden for 2009. For many unemployed workers, the first $2,400 received from unemployment compensation is not subject to taxation, according to the IRS; however, "There is no such thing as a tax fairy, ultimately, unemployment will qualify as taxable income," according to Deutch. Don't be fooled by severance packages either, those are taxable too.

FULL POST


Filed under: Business
April 8th, 2009
08:00 AM ET
April 2nd, 2009
09:40 AM ET

Shorter work weeks?

Some businesses are having shorter work weeks instead of layoffs. CNN's Alina Cho reports.
Some businesses are having shorter work weeks instead of layoffs. CNN's Alina Cho reports.

Some say Americans are crazy... and Europeans are lazy.

But what if we as a nation worked less and played more?

Watch

What do you think? Should U.S. employers consider shorter work weeks?


Filed under: Business
March 31st, 2009
09:05 AM ET

Drug testing for benefits

Lawmakers want food stamps and unemployment recipients to take random drug tests. CNN's Christine Romans reports.
Lawmakers want food stamps and unemployment recipients to take random drug tests. CNN's Christine Romans reports.

Everyone has heard about a random drug test to get your job.

How about a drug test to get an unemployment check?

A urine test for food stamps?

The number of Americans collecting jobless checks is at a record, and lawmakers in a number of states want to tie some strings to those benefits.

WATCH

What do you think? Is this a good idea?


Filed under: Business
March 31st, 2009
08:36 AM ET

Ford still passing on taxpayer money

What do you think? How can Ford remain a viable company?


Filed under: Business
March 30th, 2009
08:00 AM ET

Death by digital: Virgin Megastore folds

Lola Ogunnaike reports on the Virgin Megastore chain closing in the U.S.
Lola Ogunnaike reports on the Virgin Megastore chain closing in the U.S.

In another sign of the times, Virgin Megastore is shutting its doors.

The death of the CD was written long before the current financial crisis, but the economy may have been the final nail in the coffin.

Watch


Filed under: Business
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