Do you get taxes back from unemployment benefits paid to NYS Department of Labor?
I'm really confused about the tax situation with my unemployment benefits from last year. I received about $8,200 in UI payments from NYS Department of Labor and they took out federal taxes automatically. Now I'm doing my 2024 tax return and I'm not sure if I can get some of those taxes back as a refund? My tax preparer mentioned something about unemployment being taxable income but I thought the government already took what they needed. Has anyone dealt with this before? I'm worried I might owe more money instead of getting anything back.
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Zara Shah
Unemployment benefits are definitely taxable income at the federal level. The taxes that were withheld from your NYS Department of Labor payments were just estimated withholdings, similar to what happens with regular paychecks. Whether you get money back depends on your total income for the year and your tax bracket. If too much was withheld compared to what you actually owe, you'll get a refund. If not enough was withheld, you might owe additional taxes.
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Sean Flanagan
•That makes sense, thank you! So the withholding was just an estimate. I only worked part-time for a few months so my total income was pretty low. Hopefully that means I'll get something back.
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NebulaNomad
yeah same thing happened to me, got like $400 back even tho they took taxes out of my unemployment. depends on how much other income you had
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Luca Ferrari
You should have received a 1099-G form from NYS Department of Labor showing the total benefits paid and taxes withheld. Make sure your tax preparer has that form - it's crucial for calculating your refund correctly. Also remember that unemployment benefits aren't subject to Social Security or Medicare taxes, only federal and state income taxes.
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Nia Wilson
•I never got a 1099-G form! How do I get one? I've been waiting for it but nothing came in the mail.
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Luca Ferrari
•You can download it from your my.ny.gov account under the unemployment section. If you can't access it online, call NYS Department of Labor and they can mail you a copy. Though honestly, getting through on the phone can be really frustrating with their high call volume.
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Mateo Martinez
•I had the same phone problem trying to reach NYS Department of Labor about my 1099-G. After getting hung up on multiple times, I found this service called Claimyr (claimyr.com) that actually got me through to a real agent. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Saved me hours of trying to call myself and I got my tax form issue resolved the same day.
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Aisha Hussain
Wait, I thought unemployment wasn't taxable? That's so unfair, we're already struggling and then they tax us on the help we get??
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Zara Shah
•I understand the frustration, but unemployment has always been taxable income federally. Some states don't tax it though. The idea is that it's replacing your regular wages, which would have been taxed anyway.
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Ethan Clark
Been dealing with taxes on my UI benefits for years unfortunately. The good news is if you had the standard withholding and your income was low, you'll probably get most of it back. I usually get about 80% of what they withheld returned to me.
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