ROCKY HILL, Conn. -- Some out-of-work residents choose not to have taxes withheld from their unemployment checks, but that can turn into a bigger problem in the long run.

With the state of the economy as poor as it is, Connecticut’s job centers have been busy lately. As layoffs continue, people are desperately searching for work.

”This is it,” Mara Donahue said. “It's my only choice, keep looking."

Call centers are just as busy, authorities said. They said thousands of calls come in each day from people trying to get unemployment benefits.

Normally, benefits run out in 26 weeks, authorities said, but the jobless rate is such a concern, the federal government has extended benefits twice.

John Bialobrzeski, of the Connecticut Department of Labor, said some states are running out of benefits, but that's not the case in Connecticut.

However, he said, the state could soon be looking for additional revenues.

"We may have to tax some businesses more to pay for extended benefits," he said.

Once residents get unemployment benefits, they’re warned to be careful. Authorities said the IRS can take 20 percent. For example, if you collect $15,000 in benefits, you will owe the state $750 in taxes and the federal government $3,000 to $4,000. If you have taxes withheld, you’ll owe that money later.

Some who are unemployed are also tempted to take money out of their 401(k) plans, but authorities said this may not be a good idea if you are younger than 59 1/2 years old. When you do this, they said, you pay taxes and a penalty.