Just laid off? Here’s your money plan.

What to do after a layoff — the money checklist

Six moves, roughly in order. Most of the expensive mistakes after a layoff are timing mistakes — waiting to file, missing an election window, signing too fast.

1. 1

   File for unemployment this week

   Don’t wait for your severance agreement to be finalized. In most states your claim is effective the week you file — not the day you were laid off — so waiting costs real money. You can file even if you received severance; how it interacts with benefits differs by state, and the usual worst case is a delayed start, not a lost claim. Find your state and file with the official agency this week.

2. 2

   Estimate your weekly benefit

   Every state uses a different formula — the difference between states can be hundreds of dollars a week. Our calculators apply your state’s actual 2026 formula, the same math the agency uses, so you can budget with a real number instead of a national average. It takes about 30 seconds and nothing you type is stored. Pick your state to start →

3. 3

   Review your severance before signing

   A severance agreement is a contract, and you’re allowed to take time with it. If you’re 40 or older, federal law (the Older Workers Benefit Protection Act) gives you at least 21 daysto consider an agreement that waives age-discrimination claims — 45 days in group layoffs. Whether severance delays or reduces your unemployment benefits depends on your state, so don’t assume either way. See the EEOC’s guide to severance waivers.

4. 4

   Solve health coverage within 60 days

   Losing job-based insurance starts two clocks. You have 60 days to elect COBRA — keeping your exact plan, but usually paying the full premium plus 2%. Losing coverage is also a qualifying life event that opens a special enrollment period on HealthCare.gov, which is often cheaper once your income drops. Price both before the window closes.

5. 5

   Calculate your runway

   Add up what you actually have: final paycheck and any paid-out vacation, severance, unemployment benefits (your weekly amount × your state’s weeks), and savings you can reach without penalty. Divide by your bare-minimum monthly spend. That number — months of runway — is the single most useful figure for deciding how selective your job search can afford to be.

6. 6

   Watch the tax traps

   Unemployment benefits are taxable income at the federal level (and in many states) — but nothing is withheld unless you ask. Filing Form W-4V withholds a flat 10% and avoids a surprise bill next April. Severance is usually taxed as supplemental wages. And with a lower annual income, you may newly qualify for health-insurance savings and credits.

Benefits vary wildly by state

Same layoff, same salary — very different check depending on where you worked. All figures below are 2026 values computed from our verified dataset.

Why our numbers are different

Unemployment after a layoff, in plain language

Pick your state