Emergency Unemployment Compensation is a Federally Funded program which provides up to 20 weeks of benefits for those that are eligible and have filed their claims after May 7, 2006 or later. These benefits are available to those that have exhausted their regular State Unemployment insurance benefits and are still unemployed and are looking for work.
Eligibility for EUC benefits
You are eligible for EUC benefits if you are unemployed or working part time, you are not eligible for a new regular UI claim, you filed a new UI benefit claim on or after May 7, 2006, you have exhausted your UI benefits for the year or the year has expired and your gross earnings for the year were at least 40 times the weekly benefit rate in your base year. If you meet the above criteria, you may be eligible for EUC benefits. Also if you are currently collecting UI benefits and you are close to exhausting these benefits, you need not file a new claim for EUC benefits as this claim will be automatically filed for you when you have received your last payment. If you are eligible for this claim, instructions will be mailed to you as to how and when you can claim your benefits.
The EUC Tier I program is meant to provide 20 weeks of emergency unemployment compensation or 80% of the maximum benefit allowance on the most recent regular claim or whichever is less. This program is meant for those who have exhausted their eligibility for their regular unemployment benefits. These benefits are payable at the same weekly rate as your unemployment insurance benefits.
When can You not receive EUC benefits
If you have had a prior disqualification on your UI benefits claim, the disqualification remains until you can re qualify for your regular benefits and you will not be eligible for the EUC benefits. Also if you are eligible to file a new claim for your regular UI benefits, you cannot receive any EUC benefits until your regular benefits are exhausted. Also the Federal law states that EUC benefits cannot be claimed after June 5, 2010.
EUC benefits are taxable and will be included with your regular benefits on form 1099-G. However in February 2009, there is a new legislation that allows you to claim the first $2400 that you receive from your EUC benefits as tax free when you file your 2009 IRS tax return.
Legislation was signed in November of 2008 to extend the EUC benefits by another 13 weeks or 50% of your maximum benefit amount or which ever is less. These extended benefits are available to you only after you have exhausted the first EUC benefits and your claim will automatically be filed after you have done so.