Do you have to file taxes for unemployment benefits from NYS Department of Labor?
I've been getting UI benefits for about 6 months now and just realized I might need to deal with taxes on this money. Does anyone know if you have to file taxes for unemployment benefits you got from NYS Department of Labor? I'm getting confused because some people are saying yes and others are saying no. I never had to deal with this before and don't want to get in trouble with the IRS. Should I have been setting money aside this whole time?
10 comments
Join the conversation
Demi Hall
Yes, unemployment benefits are considered taxable income by both federal and state. NYS Department of Labor should have sent you a 1099-G form in January showing how much you received in 2024. You'll need to report this on your tax return. You can also elect to have taxes withheld from your weekly benefits - there's an option in your my.ny.gov account under payment preferences.
0 coins
Elliott luviBorBatman
•Oh no I never got a 1099-G form! How do I get one? And I definitely didn't elect to withhold taxes, I needed every dollar I could get.
0 coins
Mateusius Townsend
You can download your 1099-G from the my.ny.gov website if you didn't receive it in the mail. Log into your account and look for tax documents. As for setting money aside, yeah you probably should have been doing that. Unemployment is taxed as regular income so depending on your tax bracket you might owe quite a bit.
0 coins
Kara Yoshida
•this is exactly why the system is messed up!! they should automatically take out taxes instead of making people figure it out themselves
0 coins
Philip Cowan
I had the same panic last year when I realized this. If you can't find your 1099-G online and need to talk to someone at NYS Department of Labor about getting a replacement, I used a service called Claimyr that helped me get through to an actual person. You can check it out at claimyr.com - they have a demo video at https://youtu.be/qyftW-mnTNI that shows how it works. Way better than sitting on hold for hours.
0 coins
Caesar Grant
•How much does something like that cost though? I'm already worried about owing taxes, don't want another expense.
0 coins
Philip Cowan
•It's worth it to get your tax documents sorted out properly. Much cheaper than potential penalties if you file incorrectly or late.
0 coins
Lena Schultz
Wait I'm confused - I thought unemployment was like welfare and didn't count as income? This is my first time ever filing for UI and nobody told me about taxes when I applied.
0 coins
Demi Hall
•No, unemployment insurance benefits are definitely taxable income. It's not welfare - you earned these benefits through your previous employment and payroll taxes. The confusion is understandable but you'll need to include it on your tax return.
0 coins
Gemma Andrews
ugh same boat here, got about $8000 in benefits last year and just found out about the tax thing. Anyone know roughly what percentage I should expect to owe?
0 coins