5 Ways Losing Your Job Can Impact Taxes

By Kevin Hagen, Contributing Writer

When you lose your job, you've got enough on your mind without worrying about taxes.

Nevertheless, as you look for a new job, you need to be aware of the tax consequences to avoid making costly mistakes and to take advantage of potential tax benefits.

For example, be sure your former employer has your correct mailing address so that you receive your W-2, especially if you move.

If your income for the year drops below the filing limits, you should still file a return to claim a refund for the tax withheld while you were employed and to claim refundable credits.

If you owe taxes and can't pay them, be sure to still file your return to avoid a penalty. You may be able to work out an installment agreement with the IRS.

But that's just the beginning. Here are five more important things that could impact your taxes after losing your job.

Up First: Jobless And Taxed >>