Every month hundreds of thousands of Americans are getting laid off.  With the unemployment rate at 8.5% as of April 2009, millions of families have to deal with the uncertainty and stress from losing their jobs.

The good news is that President Obama’s 2009 Stimulus Package (American Recovery and Reinvestment Act) helps people out of work.  There are a few things that you should be aware of.

The first $2,400 from unemployment benefits in 2009 is exempt from federal income taxes.  Of course anything benefit over the $2,400 you will have to pay taxes for.

Unemployment benefits have been extended for 20 weeks plus an additional 13 weeks in high unemployment areas such as Michigan.  Check with your local unemployment office to determine if you eligible for an extension. The date you must exhaust your regular unemployment benefits in order to qualify for extended unemployment benefits has been changed to December 31, 2009 from March 31, 2009.

Although this doesn’t see like much, every dollar helps.  Unemployment benefits have been temporarily increased by $25 per week. Prior to the increase, the average weekly unemployment benefit was about $295.

The government has subsidized COBRA coverage allowing you to keep medical insurance coverage provided by your former employer.  COBRA is usually more expensive, however, for workers laid off between September 1, 2008 and December 31, 2009, the government will subsidize 65% of premiums under COBRA for up to 9 months.   Be sure to contact your former employer to determine if you qualify for the new subsidized COBRA insurance.  The 65% subsidy is for individuals with yearly salaries of $125,000 or less or for couples filing jointly making $250,000.

Related Articles:

• Your Share of Obama’s Stimulus Tax Breaks
• Where’s the Money Going in Obama’s Stimulus Package?
• What’s In the 2009 Stimulus Package for You?
• COBRA Health Insurance Coverage Stimulus Subsidy

I’m a customer of Bank of America and didn’t know that they offered cashback when using a Bank of America check (debit) card or credit card.  The service is called the “Add It Up” program. Cashback ranges from 1% to more than 10%.  Bank of America also offers a ton of coupons and discounts to many major retailers which can save you some significant money.

To get the discount, you must be a Bank of America customer and then apply for the program.  You then use your Bank of America check card or credit card when you shop through their website which is linked to participating retailers.

The cashback is credited into your checking or credit card account of your choice.  The service is simple and free to Bank of America customers.

Below is a screen shot of some of the better cashback deals.  There are a ton of them.

Bank of America Cashback Discounts

For more information visit BankofAmerica.com/shop.

MSNBC today reported that the average cell-phone user spends about $600 a year on cell phone service, while families that talk, text, or use other phone features spend about $1,800. The larger the bill, the higher are the service taxes and surcharges, which can add an additional 14.5 percent to the bill.

However, if you are diligent you can end up trimming your cell phone bill, per the following recommendations (See news video below):

1. Go prepaid
2. Don’t overbuy minutes
3. Don’t buy unneeded services
4. Buy enough of what you use
5. Check for employee discounts
6. Make temporary adjustments
7. Have your usage analyzed
8. Get local service
9. Choose the best carrier
10. Say no to phone insurance

Visit Today.MSNBC.Com to read full article.

Video: Trimming Your Cell Phone Bill

Below is a very good 5 minute video of Dave Remsey’s recommendations on how to get your finances on track. Dave Ramsey is national radio personality and best-selling author of  “The Total Money Makeover” and “The Financial Peace Planner: A Step-by-Step Guide to Restoring Your Family’s Financial Health”. 

Dave Ramsey is a personal money management expert who knows first-hand what financial peace means having lived a true rags-to-riches, riches-to-rags and back to rags-to-riches lifestyle.

By age 26 Dave Remsey established a nearly $1 million net worth making $250,000 a year only to lose it by age 30. He however rebuilt his financial life and now helps people with their finances.

Video: Dave Ramsey on How to be Financially Successful

Currently, 12.5 million people are out of work and it’s expected that millions more will be laid off in the coming months. 

The United States unemployment rate is currently at 8.5%, which is a 25 year high.  As a result, millions are receiving, applying or will be applying for unemployment insurance.

If you are concerned about getting laid off there are a few things you should be aware of which include:

1. Unemployment insurance was created to help employees who lost there job through no fault of their own to receive a temporary income until they found a new job,  received approved training, or awaiting for a recall to employment.
2. Unemployment insurance insurance are funded by taxes paid by employers and not by employees. 
3. You must have earned sufficient wages during a specified time to be eligible for unemployment insurance.  
4. You must meet certain legal eligibility requirements to collect unemployment insurance.
5. If you quit your job, you cannot collect unemployment insurance.  You must have been laid off to collect.
6. There is no deadline to apply for unemployment insurance.
7. If you apply and are denied, you have a limited amount of time to appeal depending on your state laws.
8. You can apply online for unemployment insurance, so there is no need to visit your local unemployment office.  Visit ServiceLocator.org to find out where to apply online.
9. In most situations you will receive up to 26 weeks of unemployment insurance.
10. If you qualify for an extension you will receive up to 46 weeks of unemployment insurance.
11. Per the new economic stimulus package, you will be paid an additional $25 per week.
12. Per the new economic stimulus package, the first $2,400 of unemployment benefits is tax free.
13. If your employer gives you a severance package, some states may require you to wait to collect unemployment.

There is a new calculator at the Social Security Administration Web site, called the Retirement Estimator that makes it easy to determine how your social security benefits are affected by your retirement age.

The calculator estimates are based on your actual Social Security earnings record. Remember, however, that it’s just an estimate and many things can change over the next several years before you retire such as inflation.

Additionally, the estimate will vary slightly from the actual benefit you may receive in the future because your social security earnings record is constantly being updated and the calculators use different parameters and assumptions (i.e., different stop work ages, future earnings projections, etc.).

To use the Retirement Estimator, you will have to identify yourself online by completing an application and the calculator will search the Social Security database for your earnings history to forecast your future benefits.

Visit SocialSecurity.gov/Estimator to get your estimate.

Below is a funny but true video clip from Saturday Night Live (SNL) titled “Don’t Buy Stuff You Can’t afford”.  Sticking to this simple advice can keep most people out of financial problems.  Unfortunately, most people ignore this rule!

SNL Video – Don’t Buy Stuff You Can’t Afford