You may be wondering “What can I do to extend unemployment in New Mexico?” if your benefits are running out. Extension programs are only leveraged when unemployment rates reach high levels across the country, and are available only when the government deems them necessary. Unfortunately, there are no unemployment benefits extension programs available to workers in NM. The last federal unemployment extension program ended in 2013 near the end of the Great Recession.
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Keep reading to learn the answer to the question “How can I extend unemployment in NM?”
During the Great Recession, many workers did not know how to get an unemployment extension from the state. This confusion was understandable, but during times of high unemployment, the federal government will allow unemployed workers to receive unemployment insurance benefits extensions on a large scale. To help combat the climbing unemployment rate, Congress decided to devote billions of dollars to the Emergency Unemployment Compensation (EUC) program. The program was enacted by the federal government, as it allowed workers to claim unemployment benefits as long as they met the eligibility for unemployment requirements of their home state.
The NM unemployment extension program was created so that workers could continue contributing to the national economy. If a worker remains unemployed for an extended period of time, his or her inability to purchase goods and services would mean that less money flows into the economy. If this occurred on a large scale, the national economy could be crippled. The unemployment compensation extension program prevented this from occurring, but as the unemployment rate dropped, Congress decided to end the program in 2013. Presently, there is no way to apply for a federal unemployment extension in the state of New Mexico.
Part of the federal unemployment extension program in New Mexico involved categorizing various geographic locations. If the federal government felt that the state was experiencing high rates of unemployment, it would allow unemployment claim recipients to extend their benefits automatically. By using tiers, such as the ones listed below, the government could decide which states qualified for the unemployment extension program:
Even if you are not granted a federal unemployment extension by New Mexico, you will still need to report all of your existing unemployment insurance coverage benefits to the Internal Revenue Service. The state and federal governments both classify benefits as taxable income, and you will need to report this “income” on IRS form 1099G. You can pay taxes on your benefits by making quarterly estimated payments to the IRS four times a year. This method will require you to estimate the amount of tax you owe, and if you underestimate, you will have to pay the rest during tax time. There are also penalties for making untimely quarterly payments. If you wish to avoid such issues, you can elect to have a specified amount withheld from your weekly NM unemployment benefits claim.
As an unemployed worker, you cannot receive a New Mexico unemployment extension unless the federal government decides to enact the EUC program again. This means that you will have to find other ways to provide for yourself after your benefits expire. Try employing some of the following tips if you are having a hard time finding work, or you are ineligible for an unemployment extension in NM.