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Angie Drobnic Holan
By Angie Drobnic Holan February 19, 2009
Back to Extend unemployment insurance benefits and temporarily suspend taxes on these benefits

Obama signs stimulus, extending unemployment

The American Recovery and Reinvestment Act of 2009, which President Obama signed on Feb. 17, 2009, contains a major extension of unemployment benefits.

States administer unemployment based on federal guidelines, so how much a person gets and how long he or she receives benefits varies by state. Usually, people receive a set amount of money each week for about six months.

When the economy deteriorated in 2008, Congress extended benefits, giving more money and setting longer time frames for the states with the highest unemployment numbers. The economic recovery bill that Obama signed extended those time periods again. Depending on circumstances, most people receiving benefits should get an extension, with the hardest hit states winning extended benefits through Dec. 31, 2009.

Unemployment benefits are normally taxed as regular income, but the bill exempted the first $2,400 of unemployment from 2009 income taxes.

Obama pledged to extend unemployment benefits and temporarily suspend taxes on the benefits. He definitely achieved the first part, and taxes are suspended on some of those benefits. So we are rating this one Promise Kept.

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