Can we still claim ny unemployment benefits on tax returns this year?

Yes unemployment is taxable income. You have to pay federal taxes on it but not NY state taxes. So you'll need to include your 1099-G form when filing federal returns. The state tax exemption is pretty nice though!

After trying to reach NY unemployment for weeks with no success about a similar tax question, I finally found a way to talk to a real person. I used this service called claimyr.com that got me connected to an actual agent in about 40 minutes. Totally worth it after spending days getting nowhere. The agent confirmed all unemployment is fully taxable at federal level. It was the best money I've ever spent to finally get my benefits paid quickly! Check out their service here: https://youtu.be/Rdqa1gKtxuE

During 2020 and 2021 there was a special exclusion where you didn't have to pay federal taxes on the first $10,200 of unemployment benefits. But that ended. For 2022 and 2023 you have to pay full federal taxes on ALL unemployment benefits. Your 1099-G has the amount you need to report.

Yep, unemployment is 100% taxable for federal. But the good news is that you can deduct expenses related to your job search (like resume services, career counseling, travel expenses for interviews). So make sure your keeping those recepts.

I'm an accountant who deals with NY unemployment tax issues regularly. Here's what you need to know: Federal taxes: Unemployment compensation is fully taxable on your federal return. The temporary exclusion that existed for 2020 (and was extended to early 2021) is no longer in effect. NY State taxes: New York State DOES tax unemployment benefits. You must report this income on both your federal and state returns. Withholding: If you didn't have taxes withheld from your unemployment payments (many people don't), you may face a tax bill. For future reference, you can request withholding on unemployment benefits. Documentation: Your 1099-G form shows the total benefits paid and any federal taxes already withheld. Keep this document with your tax records. If you're struggling to reach someone at NYSDOL about tax questions, I highly recommend using claimyr.com - it's a service that connects you directly with unemployment agents. Many of my clients have used it with success when they couldn't get through the regular phone lines. Hope this helps!

I just did my taxes with turbotax and yes its fully taxable. The stupid thing is they only withhold 10% if you asked for it, which is probably lower than your actual tax bracket. So heads up you might owe more than you expected 😭

I'm literally staring at this same issue right now. My tax guy says we gotta pay taxes on all of it. Apparently that COVID exemption thing expired. The whole system is rigged man.

Just to add another data point - I received NY unemployment last year and had to pay full federal taxes on it. However, if your overall income was low, you might qualify for the Earned Income Tax Credit which could offset some of the taxes. Worth looking into!

the govt decided we don't deserve any more breaks so yea, unemployment back to being 100% taxable. btw if you're self employed and collect unemployment, you'll also have to pay self-employment tax on any freelance income which is DOUBLE the normal tax rate. ask me how i know 🤡

Check if you qualify for free tax filing through the VITA program. They can help answer these specific questions for your situation and file for free if you made under $60k.

I tried calling ny unemployment about my 1099-G and kept getting hung up on. After spending hours trying to get through I used claimyr.com and got a callback with an actual agent in like 45 mins. Talking to an agent got my $ question resolved so fast it was worth every penny. Just my 2 cents if you need to actually talk to someone.

I know for a fact that 2020 and part of 2021 had special rules where the first $10,200 was not taxable federally. But that's over now. For 2022 and 2023 you gotta pay tax on all of it. Sorry dude.

Don't forget you can still detuct the standard deduction from your total income which includes unemployment. For 2023 taxes that's $13,850 for single filers. So if your total income including unemployment was less than that, you won't owe federal income tax.

Ugh I hate tax season so much. I'm in the exsact same situation. Got laid off, collected for 4 months, now I'm stressed about the tax bill. Why do they make this so complicated?!?

There's actually a new NYS tax credit for 2023 called the Working Families Tax Credit that might help offset some of the tax burden if you qualify. Worth looking into if you were on unemployment part of the year but also worked.

If you had any taxes withheld from your unemployment checks, make sure that shows up correctly on your 1099-G. My friend had withholding but it wasn't reflected on his form and he had to contact ny unemployment to get it fixed.