How to stop tax withholding on DEO unemployment payments in Florida

Yes, you can absolutely change this! Log into your CONNECT account and go to 'View and Maintain Account Information.' Then click on 'Payment Method and Tax Withholding Options.' There should be a checkbox for tax withholding that you can uncheck. Just be aware that you'll need to set aside money for taxes later, since unemployment benefits are considered taxable income by the IRS.

Thank you SO much! I didn't even know that section existed in CONNECT. Will do this right away. And yeah, I know I'll need to deal with the taxes later but right now I just need the full amount to cover rent.

Be VERY careful about this!!! I did the same thing last year and ended up owing over $1800 at tax time with NO WAY to pay it. The IRS payment plan is another monthly bill I didn't need. Sometimes it's better to just take the hit now than get a huge surprise bill later when ur already broke.

same here the tax bill RUINED me this year. wish i had just kept the withholding turned on tbh

I called DEO about this exact issue last month because the CONNECT site kept giving me errors. After 3 days of calling and getting busy signals, I found this service called Claimyr that got me through to a DEO agent in about 20 minutes. They have a demo video showing how it works here: https://youtu.be/UzW_hbUy-ss?si=zORd51jeq1GX5Ldj and their website is claimyr.com. The agent was able to change my tax withholding setting over the phone. Saved me a ton of headache!

I've tried calling so many times and either get disconnected or sit on hold forever! Thanks for the tip, I'll check out that service if the website doesn't work for me.

just wondering but does anyone know if the tax withholding is actually 10%? mine looks different and i cant figure out if they're taking the right amount or not

The federal tax withholding for unemployment benefits is a flat 10%. If you're seeing a different percentage, it might be worth checking with DEO to make sure there isn't an error in your account. Sometimes they can miscalculate, especially with the first few payments.

My neighbor told me she had the same problem but turns out she was looking at the wrong thing. What looked like tax deduction was actually her retirement account deduction from her previous employer somehow still coming out? You should double check all the deductions to make sure it's actually federal tax withholding and not something else.

omg i didn't even think of that possibility!! gonna check mine again

When you turn off tax withholding, make sure you're setting aside at least 15-20% of your benefits if possible. Federal taxes will be around 10%, but many people forget that unemployment benefits can also bump you into a higher tax bracket depending on your other income for the year. I'm an accountant and see this mistake all the time - people think they'll just owe the 10% that would have been withheld, but end up owing much more. The tax bill can be pretty shocking, especially if you've had other income in the same tax year before losing your job.

That's a good point I hadn't considered. I did work January-March this year before getting laid off, so I'll have that income plus unemployment. Maybe I should try to put something aside even if it's just a little bit each week.

does anyone know if you can switch back and forth? like turn off withholding for a month when rent is due then turn it back on?

Yes, you can change your tax withholding preference at any time through CONNECT. There's no limit to how often you can switch between withholding and not withholding. Just be aware that changes might not take effect immediately - it could affect your next payment after making the change.

wait wait wait are we talking about STATE taxes or FEDERAL taxes??? i thought florida doesnt have income tax so why would they take anything out??

You're right that Florida doesn't have state income tax, but unemployment benefits are still subject to FEDERAL income tax. That's what the 10% withholding is for - federal taxes only. So the DEO is withholding money to send to the IRS, not to the state of Florida.

Update: I was able to change the setting in CONNECT! For anyone else looking, after you log in, click on \