Neighbors in Need Act - Amends the Temporary Extended Unemployment Compensation Act of 2002 (TEUCA) to provide a program extension for States experiencing high unemployment.
Amends the Social Security Act to require: (1) increases and decreases in the earnings credited to State accounts when States meet or fail to meet funding goals; and (2) restriction of interest-free advances to State accounts in the Unemployment Trust Fund to States which meet funding goals.
Amends the Internal Revenue Code to: (1) suspend the tax on individual unemployment compensation for 2004 and 2005; (2) allow certified States to elect to collect Federal unemployment taxes under the Federal Unemployment Tax Act (FUTA); and (3) require States to distribute to unemployed individuals State-specific information packets explaining unemployment insurance eligibility conditions.