Job Loss Money Checklist: What to Do in the First 30 Days

Unemployment insurance is run by each state, so rules, amounts and waiting periods differ. File with the state where you worked as soon as you can, even if you're not sure you qualify. Filing is free on your state's official site.

Unemployment benefits are generally taxable income. The IRS says you can choose to have federal income tax withheld (Form W-4V) or make estimated payments, and you'll get a Form 1099-G showing what you were paid.

COBRA lets you keep your employer's group health plan for a limited time, usually up to 18 months after a job loss, if your employer had 20 or more employees. You may have to pay the full premium plus up to 2% (102% of the cost). The Department of Labor says you have at least 60 days to elect COBRA, counted from when your coverage ends or when you get the election notice, whichever is later, and then 45 days to make your first payment. If you elect, coverage can be retroactive.

Marketplace coverage may cost less, especially if your income has dropped. Losing job-based coverage generally qualifies you for a Special Enrollment Period: you can enroll within 60 days after losing coverage, or up to 60 days before if you expect to lose it. Check whether you or your children now qualify for Medicaid or CHIP.

Compare both before deciding. If you drop COBRA voluntarily later, that alone doesn't open a new Marketplace enrollment window.

Try not to cash out a 401(k) or IRA to cover bills unless you have no other option. The IRS generally charges a 10% additional tax on early withdrawals before age 59½, on top of regular income tax, unless an exception applies. You can usually leave a 401(k) where it is or roll it into an IRA or a new employer's plan without tax if you follow the rollover rules.

• Make a bare-bones budget: housing, utilities, food, insurance, transportation, minimum debt payments.
• Call lenders, card issuers and utilities before you miss a payment and ask about hardship programs or payment plans. Our Bill Negotiation Scripts have the words to use.
• Federal student loans: you may qualify for an unemployment deferment. Education Department rules allow up to 3 years in total for most borrowers (6 months at a time), with a change for Direct Loans first disbursed on or after July 1, 2027. Ask your loan servicer, and compare income-driven repayment.
• Check SNAP (food assistance) and Lifeline (up to $9.25 a month off phone or internet) now that your income has changed.
• Run a quick subscription audit and pause anything you can.

The FTC warns that scammers post fake jobs to get your money or personal information. Be wary of any "job" that asks you to pay for training or equipment, deposit a check and send money back, or give your bank details before you've been hired.