Can you get unemployment benefits from NYS Department of Labor if you owe back taxes?

You can still file and receive unemployment benefits even if you owe back taxes. NYS Department of Labor doesn't check your tax debt status when determining eligibility for UI benefits. However, the state may intercept your unemployment payments to offset what you owe through the Treasury Offset Program. You should still file your claim immediately - don't let tax debt prevent you from applying for benefits you've earned.

same situation last year, they took like 15% of my weekly benefits to pay back taxes i owed. still got most of my money though

The offset process is handled by different agencies. NYS Department of Labor processes your unemployment claim based on work history and reason for separation. If you're eligible, you'll be approved. The tax offset happens separately through the state's collection system. You should receive notice if they plan to intercept your benefits. I'd recommend calling both the tax department and NYS Department of Labor to understand your specific situation.

If you're having trouble reaching NYS Department of Labor about this or any other unemployment questions, I had success using Claimyr (claimyr.com) to get through to an actual agent. They have a system that navigates the phone tree and waits on hold for you. There's a video demo at https://youtu.be/qyftW-mnTNI that shows exactly how it works. Really helped when I needed to clarify my claim status.

just file your claim and worry about the tax thing later!!! you need money now and unemployment is something you paid into while working. the worst they can do is take some of it but you'll still get something

I think this is pretty common actually. The state wants to collect what they're owed but they also know people need unemployment benefits to survive. File your weekly claims on time and keep job searching - that's what matters for staying eligible.

I went through this exact situation a few years ago when I owed the state about $3,200 in back taxes. You can definitely still file and get approved for unemployment benefits - the tax debt won't disqualify you from receiving UI. What happened in my case was they offset about 25% of my weekly benefit amount to pay down the tax debt, but I still received the majority of my benefits. You should get a notice explaining the offset once it starts. The most important thing is to file your claim right away since there's a waiting period, and don't let the tax issue delay you from applying for benefits you've earned through your work history.

I had a similar experience but with federal taxes owed. The unemployment office processed my claim normally and I got approved based on my work history. About a month later I started receiving notices that they were intercepting part of my benefits for the tax debt. In my case they took about 20% each week until the debt was paid off. The good news is you still get most of your money and they can't take 100% - they have to leave you enough to live on. Definitely file your claim immediately though, don't wait because of the tax issue. You earned those benefits through your payroll contributions when you were working.

I'm in a similar boat right now - just lost my job last week and also owe back taxes from 2021. Reading through these responses is really reassuring! It sounds like the key takeaway is that owing taxes won't prevent you from getting approved for unemployment, but they may take a portion to pay down what you owe. From what everyone's saying, it seems like 15-25% is pretty typical for the offset amount. The most important thing seems to be filing your claim right away since there are waiting periods involved. I'm definitely going to apply tomorrow morning - thanks everyone for sharing your experiences!