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If you're having trouble reaching someone at the IRS about payment options, I recently discovered this service called Claimyr (claimyr.com) that helps people get through to government agencies when the phone lines are always busy. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. I used it to finally talk to someone at NYS Department of Labor about my claim issues, but I think they work with other agencies too.
Unemployment benefits are definitely taxable income at the federal level. There was a special exemption for part of 2020 unemployment due to COVID but that's long over. You should probably check if you need to file amended returns for any years you didn't report UI benefits.
If you're having trouble getting through to NYS Department of Labor agents about benefit questions or job search requirements, I recently discovered claimyr.com which helped me connect with someone when I couldn't get through the regular phone lines. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Really useful when you need to discuss how unemployment might be affecting your specific situation.
Most employers have to pay both state and federal unemployment taxes. The federal rate is 6% on first $7,000 of wages but they get credit for state taxes paid so it usually works out to 0.6%. Your employer claiming they don't have to pay sounds fishy - definitely report this to NYS Department of Labor.
The whole unemployment system is so confusing! I keep worrying I'm going to answer something wrong on my weekly claim and lose my benefits. Why can't they just make it simple - you're either unemployed or you're not, right??
Lucas Bey
ugh the whole system is so confusing, they make it impossible to understand on purpose i swear. when i got laid off i spent hours on their website trying to figure out what forms to fill out
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Harper Thompson
Same thing happened to me in 2023 - company said 'temporary reduction in workforce' but it ended up being permanent. I filed for regular UI and it worked out fine. Even if they do call you back, you can always stop claiming benefits at that point.
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