An individual became unemployed in 09 because the plant where he worked closed down and he has not been able to find other work. He is 38 and he took a distribution from his 401(k) to cover expenses. His only expenses for COBRA was $15 per month that covered only dental insurance. His out of pocket medical expenses were tiny because he was healthy. He did not buy a home or meet any of the other exceptions to the premature distribution penalty listed in tab 12 of TTB 1040 Edition. We already know that the first $2400 of his unemployment benefits is not taxable. Now for my question.
I recall vaguely that there is some kind of tax credit for people who lose their jobs due to plant closings or etc. I can't find the info in TTB likely because I don't know the technical term to search for in the index. Can anyone help me out with the term or perhaps even the page?
Also am I missing any other potential tax savings?
Thank you very much.
I recall vaguely that there is some kind of tax credit for people who lose their jobs due to plant closings or etc. I can't find the info in TTB likely because I don't know the technical term to search for in the index. Can anyone help me out with the term or perhaps even the page?
Also am I missing any other potential tax savings?
Thank you very much.
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