Can you get unemployment benefits from NYS Department of Labor if you owe back taxes?
I just got laid off from my job at a warehouse and need to file for unemployment benefits. Problem is I owe about $2,800 in back taxes from 2022 that I haven't been able to pay yet. Will this prevent me from getting approved for UI benefits through NYS Department of Labor? I heard somewhere that they might offset your benefits if you owe money to the state but I'm not sure if that's true. Really stressed about this because I need the income to cover rent while I look for work.
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Elijah Jackson
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.
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Isabella Martin
AuthorThank you! So I can still get approved but they might take some of the money to pay my tax debt? How much would they typically take?
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Sophia Miller
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
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Mason Davis
Wait they can just take money from your unemployment without telling you? That doesn't seem right, shouldn't they have to notify you first?
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Mia Rodriguez
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.
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Isabella Martin
AuthorShould I mention the tax debt when I file my unemployment claim or just not bring it up?
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Mia Rodriguez
Don't volunteer that information during your unemployment application. Answer the questions they ask honestly, but the tax debt isn't relevant to your UI eligibility determination.
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Jacob Lewis
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.
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Amelia Martinez
How much does something like that cost? Seems like it might be expensive for someone who's already unemployed.
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Jacob Lewis
It was worth it for me to get answers quickly rather than spending hours trying to call. Much less stressful than the usual NYS Department of Labor phone nightmare.
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Ethan Clark
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
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Amelia Martinez
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.
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QuantumLeap
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.
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