The money would be taxable in 2010. However you may want to seriously deiscussing with a tax professional whether aquiring the money in 2010 versus 2009 (if possible) would be in your our your best interest. You always want to minimize to the greatest extent within the law your tax liability.

A. You WORK in Philly
B. You LIVE in Philly (regardless of where you work)

Here are some resources:
http://www.phila.gov/Revenue/FAQs.html
http://www.unc.edu/~cigar/PhilInqEIT.htm

You may wish to contact the Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving problems with the IRS, or who believe that an IRS system or procedure is not working as it should. Here are seven things every taxpayer should know about TAS:

1. TAS is your voice at the IRS.

2. Our service is free, confidential, and tailored to meet your needs.

3.  You may be eligible for TAS help if you have tried to resolve your tax problem through normal IRS channels and have gotten nowhere, or you believe an IRS procedure just isn't working as it should. 

4.  TAS helps taxpayers whose problems are causing financial difficulty or significant cost, including the cost of professional representation. This includes businesses as well as individuals.

5.  TAS employees know the IRS and how to navigate it. We will listen to your problem, help you understand what needs to be done to resolve it, and stay with you every step of the way until your problem is resolved.

6.  TAS has at least one local taxpayer advocate in every state, the District of Columbia, and Puerto Rico.  You can call your local advocate, whose number is in your phone book, in Publication 1546, Taxpayer Advocate Service -- Your Voice at the IRS, and on our website at Contact Your Advocate.  You can also call our toll-free case intake line at 1-877-777-4778.

7.  You can learn about your rights and responsibilities as a taxpayer by visiting our online tax toolkit at www.taxtoolkit.irs.gov.

There is an awful lot of information that is missing before I could address your question. Other items to consider are filing status, other forms of income, were any federal taxes withheld from any income source? etc.

I would strongly recommend that you use Free File on IRS.gov when tax filing season rolls around. This way you'll know if you have any tax liability or possible refund. Electronic filing using Free File is free under a certain income level. Last year that income level was $56,000.

Even if your income level was over $56,000 I still strongly recommend filing electronically because it is much more accurate than pencil and paper, much faster (refunds in about 10 days) and safer (no lost return or refund check). 

If someone owes you money that you cannot collect, you may have a bad debt. For a discussion of what constitutes a valid debt, refer to Publication 550, Investment Income and Expenses, and Publication 535, Business Expense. To deduct a bad debt, you must have previously included the amount in your income or loaned out your cash. If you are a cash basis taxpayer, as most individuals are, you may not take a bad debt deduction for money you expected to receive but did not (for example, for money owed to you for services performed, or rent) because that amount was never included in your income. For a bad debt, you must show that there was an intention at the time of the transaction to make a loan and not a gift. If you lend money to a relative or friend with the understanding that it may not be repaid, it is considered a gift and not a loan.

There are two kinds of bad debts – business and nonbusiness. A business bad debt, generally, is one that comes from operating your trade or business. A business deducts its bad debts from gross income when figuring its taxable income. Business bad debts may be deducted in part or in full. All other bad debts are nonbusiness. Nonbusiness bad debts must be totally worthless to be deductible. You cannot deduct a partially worthless nonbusiness bad debt

A debt becomes worthless when the surrounding facts and circumstances indicate there is no longer any chance the amount owed will be paid. To show that a debt is worthless, you must establish that you have taken reasonable steps to collect the debt. It is not necessary to go to court if you can show that a judgment from the court would be uncollectible. You may take the deduction only in the year the debt becomes worthless. You do not have to wait until a debt is due to determine whether it is worthless.

A nonbusiness bad debt is reported as a short–term capital loss in Part 1 on Form 1040, Schedule D (PDF). It is subject to the capital loss limitations. A nonbusiness bad debt deduction requires a separate detailed statement attached to your return.

For more information on nonbusiness bad debts, refer to Publication 550, Investment Income and Expenses. For more information on business bad debts, refer to Publication 535, Business Expenses.

You should contact the Unemployment Compensation Program in the Florida Agency for at www.floridajobs.org/Unemployment/.

If you had made the April 15 filing deadline then when you filled out your taxes the information you provided should have covered this issue in the forms and schedules. If you requested an October 15 filing extension you may want to consult with a tax professional on how to deal with these issues.

I believe that this Revenue Ruling 61-201 is the appropriate reference. For a commercial variable annuity that does not guarantee the principal (amounts contributed), then there may be an ordinary loss upon surrender of the annuity contract for cash consideration. The difference between the cost basis in the contract over the amount received upon surrender of the contract, will be an ordinary loss. This loss would be reported on Schedule A (Form 1040) as a miscellaneous deduction subject to the 2% limitation.

Yes they can be garnished. I recommend that you contact the state UI office for further clarification as you do not state what type of student loan you have outstanding. Guaranteed student loans are a category where UI benefits can be garnished.

Normal processing time for Forms 1040X is 8 to 12 weeks from the IRS receipt date.