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To summarize for everyone confused about this topic: 1. For 2025 taxes, unemployment benefits ARE taxable income both federally and in NY state 2. There is no special March 26 deadline that affects your refund eligibility 3. File by April 15th to avoid late penalties (unless the IRS announces an extension) 4. Your tax software or preparer should automatically calculate the correct tax treatment for your unemployment benefits 5. If you need specific guidance for your situation, speak with a tax professional or try to reach the NY tax department directly Hope this helps clear things up!
WAIT ONE MORE THING!! Make sure you opted to have taxes withheld from your weekly unemployment payments!!! I didn't realize I needed to select this when I first applied and ended up owing a BUNCH at tax time last year. It was a total nightmare!!!!
Thanks everyone for the helpful responses! I'll definitely be checking my NY.gov account for that 1099-G next month. Sounds like I need to prepare for owing some federal taxes but at least I won't owe anything to NY state. I'll look into the payment plan options with the IRS since there's no way I can pay a large bill all at once right now. Really appreciate all the advice!
I'm in almost exactly the same boat as you! Lost my job last March, on unemployment until August, and didn't withhold taxes either. Just putting together tax stuff now and realizing I might be in trouble. Following this thread closely for advice...
This happens at least once every quarter with KeyBank in my experience. When I was on UI last year, I eventually set up text alerts for deposits so I wouldn't panic. Glad your money came through! For future reference, these delays almost always resolve within the same business day.
For anyone following this thread with similar issues: NY unemployment benefit payments typically post to accounts within 1-2 business days after being released. Occasional delays can happen due to: - Bank processing times (especially with KeyBank) - System maintenance - High volume processing periods (like month-end) - Weekend/holiday processing schedules If your payment doesn't appear after 3 business days from release, that's when you should contact NYSDOL directly.
Emma Wilson
Awesome! Make sure you take screenshots of the confirmation page just in case. NY unemployment has a habit of
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CosmicCowboy
Great idea - just took screenshots of everything including the confirmation number. Better safe than sorry!
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