The Federal Stimulus Plan

The Federal Stimulus Plan has been in the news a lot lately. So what does it mean for people receiving unemployment benefits in Illinois? For more information on the Stimulus Plan and its effects on unemployment, including the $25 weekly supplement to eligible individuals and federal tax changes continue reading...

The American Recovery and Reinvestment Act of 2009 is now law and
was effective February 22, 2009. Here are some basic facts about how
this law affects Unemployment Insurance.

The Federal Additional Compensation
The recently enacted Federal Additional Compensation Program (FAC)
provides a $25 weekly supplement to individuals who are eligible to
receive unemployment benefits under federal or state law.
FAC is payable effective February 22, 2009. Therefore, the weekending
February 28, 2009 is the first week your unemployment
payment will reflect the $25 FAC. Payment of FAC will continue
through the week ending July 3, 2010 as long as your benefit year was
established prior to January 1, 2010 and you continue to be eligible for
unemployment benefits.

FAC benefits are subject to federal and state taxes. If you are paid
FAC to which you were not entitled, an overpayment will be
established.

An individual may not receive a FAC supplement if they are ineligible
for unemployment benefits.

YOUR FAC PAYMENT WILL AUTOMATICALLY BE INCLUDED WITH YOUR
REGULAR PAYMENT AND IDENTIFIED SEPARATELY ON THE PAYMENT
NOTICE.

Federal tax exemption:
The first $2,400 of UI benefits received during the 2009 tax year are
not subject to federal taxes. If you wish to change your withholding
status on your current claim, please complete the TAX-2 form and fax
the form to 1-217-557-2067 or mail the form to:

IDES
850 E Madison
First Floor
Springfield, IL 62794-9295

grand ave. chicago ides unemployment office

Lots of requests for this:

Grand Avenue
(773) 227-7117 3500
West Grand Ave
Chicago, IL 60651-4009