Can I still claim NY unemployment benefits on my 2025 tax return?

Yes, unemployment benefits are still fully taxable on your federal tax return for 2025. You'll receive a 1099-G form from NYSDOL that shows the total amount you received (should be available in your online account by late January). Since you didn't have taxes withheld, you'll likely owe federal taxes on that income. The good news is that New York State does NOT tax unemployment benefits at the state level, so you won't owe NY state taxes on that money. This has been the case for several years now. Make sure you report the full amount on your federal return even if you don't have the 1099-G yet. The IRS automatically gets a copy of this form, and mismatches can trigger audits.

I went through this EXACT situation last year! Didn't have anything withheld and got SLAMMED with a huge tax bill. The 1099-G shocked me - I didn't realize how much I'd actually received over 5 months. My suggestion: start setting aside money NOW if you can. The federal tax depends on your overall income bracket, but figure roughly 15-25% of whatever unemployment you received. Also check if you qualify for any tax credits that might offset some of it. The Earned Income Credit helped me a bit since my overall yearly income was lower due to unemployment.

wait you guys got your 1099-Gs already?? i havent gotten mine and ive been checking the website every day

This is EXACTLY what's wrong with the unemployment system!!! They don't make it clear that you need to withhold taxes, then hit you with a HUGE bill at the end of the year when you're ALREADY struggling financially! How does this make ANY sense?? I got completely blindsided last year even though I'd checked the withhold box - turns out they weren't withholding ENOUGH! The whole system is designed to trick people who are already down on their luck!!!

If you're still having trouble getting your 1099-G or have questions about your unemployment taxes, you might want to try Claimyr (claimyr.com). I was in a similar situation last year and couldn't get anyone on the phone at NYSDOL. Claimyr got me connected to an agent in about 15 minutes instead of spending days redialing. They have a video showing how it works: https://youtu.be/Rdqa1gKtxuE The agent I spoke with was able to explain exactly how the taxes work and helped me update my withholding for my remaining benefits. Totally worth it considering how much time I wasted trying to get through on my own.

one thing nobody mentioned - if you had a lot of job search expenses while unemployed like gas for interviews, work clothes, resume services etc you might be able to deduct some of that stuff. talk to a tax person. my brother did this last year and it helped a little bit.

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...