Can I get NYS Department of Labor unemployment benefits if I owe back taxes?
I got laid off from my construction job last month and need to file for unemployment but I'm worried because I owe the IRS about $4,800 from 2023. My ex-wife handled our taxes that year and apparently didn't pay what we owed before we divorced. Will NYS Department of Labor deny my UI claim because of this tax debt? I really need these benefits to pay rent but I'm scared to even apply if they're just going to reject me automatically.
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Julia Hall
Your tax debt with the IRS won't prevent you from getting unemployment benefits from NYS Department of Labor. These are completely separate systems - UI eligibility is based on your work history and reason for separation, not your tax status. You should definitely apply right away since there's a waiting period anyway.
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Evelyn Rivera
•That's such a relief! I was putting off filing because I thought they would see the debt somehow. Going to apply today.
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Arjun Patel
Yeah file ASAP! The only thing that might happen is if you start receiving benefits, the IRS could potentially garnish them later to collect your debt, but that's a separate issue from getting approved in the first place. NYS Department of Labor doesn't check your tax status when processing claims.
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Jade Lopez
•Wait really? They can garnish unemployment? That seems harsh when people are already struggling financially.
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Arjun Patel
•It's possible but not automatic. Usually they go after wages first, and UI benefits are pretty low anyway so it's not their priority. Don't let it stop you from applying.
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Tony Brooks
I had a similar situation last year - owed state taxes and was terrified to apply for unemployment. Turns out it was no problem at all getting approved. The hardest part was actually getting through to NYS Department of Labor to check on my claim status! I kept getting disconnected after waiting on hold forever. Finally found this service called Claimyr (claimyr.com) that gets you through to an actual agent. They have a video demo showing how it works: https://youtu.be/qyftW-mnTNI. Saved me so much frustration.
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Ella rollingthunder87
•Interesting, never heard of that before. Did they charge you for it?
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Tony Brooks
•Yeah there's a fee but honestly worth it when you're stressed about your claim and can't get through any other way. Much better than spending days trying to call.
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Yara Campbell
the unemployment office doesnt care about your taxes lol they just want to know if you worked enough and why you got fired/laid off. totally different agencies
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Isaac Wright
Just wanted to say thanks for asking this question - I'm in almost the exact same boat with owing taxes from when my business failed. Was also worried about applying but this thread convinced me to go ahead and file my claim.
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Kevin Bell
Don't stress about the tax debt - it won't affect your UI eligibility at all! I work in HR and have helped tons of employees file unemployment claims over the years. NYS Department of Labor only looks at your employment history and separation reason. The IRS debt is completely unrelated. Just make sure you file your weekly certifications on time once you're approved. Construction workers usually qualify easily since layoffs are so common in that industry due to seasonal work and project completions.
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