OK but like why is this so complicated?? You get money, you pay taxes on it, then they want it back and you have to jump through tax hoops to maybe get some relief. The whole unemployment system is backwards.

just went through this exact situation! definitely look into the section 1341 thing the other person mentioned. my accountant said it saved me like $800 compared to just taking the deduction. you basically get to recalculate your prior year taxes as if you never got that unemployment money

Thank you all so much for the advice! I'm still nervous but feel way more prepared now. My hearing is next Tuesday, and I've already started organizing all my documents and practicing what I'll say. I'll update once it's over to let you know how it went. Fingers crossed!

I went through this process about 6 months ago and wanted to share a few additional tips that really helped me. First, test your phone connection beforehand - my hearing was delayed 20 minutes because of poor signal quality and I had to call back from a landline. Second, have water nearby because you'll be talking a lot and your mouth gets dry from nerves. Third, if you're claiming you were terminated unfairly, make sure you can clearly explain the sequence of events leading up to your termination - the judge asked me very specific questions about dates and who said what. Also, don't worry too much about formal dress since it's over the phone, but speaking clearly and professionally is what matters most. The judge in my case was actually pretty patient and understanding. One last thing - if you disagree with something your employer says during the hearing, don't interrupt! Wait for the judge to give you a chance to respond. Good luck with your hearing on Tuesday!

Just to add - make sure you're ready to start doing job searches right away too because NYS Department of Labor requires you to be actively looking for work. You'll need to log your job search activities and be able to provide proof if they ask for it. Don't let that part catch you off guard like it did me!

@Jade Santiago - Yes, definitely file today! Don't wait any longer. Since you lost your job on December 15th and it's now late December, you've already missed out on potential benefits for those weeks. When you file your claim on the NY.gov website, your benefit year will start from the date you file, not from when you were laid off. So the sooner you get that application in, the better. Make sure you have your Social Security number, driver's license, and employment information from your warehouse job ready when you apply. The process can take a little while to complete online, so set aside some time to do it properly.

Just be careful about how you structure your LLC activities while on unemployment. If NYS Department of Labor thinks you're actively seeking work for your business instead of looking for a job, that could create problems. Keep good records of your job search activities and make sure you're meeting the work search requirements.

I went through this exact situation about 6 months ago. Had an LLC for some side graphic design work but was primarily employed full-time. When I got laid off, I was honest about the LLC on my application and had no issues getting approved. The caseworker explained that since my LLC earnings were sporadic and minimal compared to my regular salary, it didn't affect my eligibility. Just make sure you keep detailed records of any LLC income and report it accurately on your weekly certifications. The NYS DOL website actually has a section about business ownership and unemployment that might be helpful to review before you apply.

yeah i had unemployment last year and got a small refund actually. but i think it was because i had other tax credits that helped offset things. really depends on your whole tax picture not just the unemployment part

Based on your numbers ($14,500 in benefits with $1,450 withheld), you'll likely owe additional federal taxes. The 10% withholding often isn't enough since unemployment benefits are taxed as ordinary income. For 2024, if you're single with $14,500 income, your effective tax rate would be around 12%, so you'd owe roughly $1,740 total federal tax. Since only $1,450 was withheld, you'd probably owe around $290 more. Don't forget about NY state taxes too - they don't automatically withhold state taxes from unemployment benefits, so you'll likely owe state taxes as well unless you made quarterly payments.