Do you have to file taxes on unemployment benefits from NYS Department of Labor?
I received unemployment benefits for about 8 months last year and I'm getting ready to do my taxes. Do I need to report the unemployment money I got from NYS Department of Labor? I didn't have any taxes taken out when I was getting my weekly payments because I needed every dollar I could get at the time. Now I'm worried I'm going to owe a huge amount. Has anyone dealt with this before?
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Yuki Tanaka
Yes, unemployment benefits are considered taxable income by both federal and state governments. NYS Department of Labor should have sent you a 1099-G form showing the total amount you received in 2024. You'll need to report this on your tax return. If you didn't have taxes withheld, you might owe money when you file.
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NeonNova
•I haven't gotten any 1099-G form yet. When do they usually send those out? Should I be worried if I haven't received it?
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Carmen Diaz
The 1099-G forms are typically mailed by January 31st. You can also access it online through your my.ny.gov account if you're registered. Just log in and look for tax documents section. Federal tax rate on unemployment is your normal income tax rate, and NY state also taxes it. If you got a significant amount, definitely consider setting aside money or filing for an extension if you can't pay right away.
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Andre Laurent
•wait so if I got like $15000 in unemployment last year I have to pay taxes on ALL of that?? I thought government benefits weren't taxed
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Carmen Diaz
•Unfortunately yes, unlike some other government benefits, unemployment is fully taxable. The amount you'll owe depends on your total income and tax bracket. Definitely recommend talking to a tax preparer if you received a large amount.
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Emily Jackson
I learned this the hard way a few years ago. Got hit with a $2800 tax bill because I didn't have anything withheld from my UI payments. Now I always elect to have the maximum 10% federal and 3.5% state taxes taken out when I file for unemployment. It's better to get a small refund than owe thousands.
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NeonNova
•Ugh I wish I had known about the withholding option when I first applied. Is it too late to change that for future claims?
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Liam Mendez
If you're having trouble getting your 1099-G or accessing your my.ny.gov account, I had success using claimyr.com to get through to an actual NYS Department of Labor representative. They have a callback service that actually works - you can see how it works in their demo video at https://youtu.be/qyftW-mnTNI. The agent was able to help me get my tax documents resent and answered questions about the withholding options for my ongoing claim.
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Sophia Nguyen
•Never heard of that service but honestly anything that helps get through to DOL is worth trying. The phone system is impossible
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Jacob Smithson
Just a heads up - if you can't pay the full amount when you file, you can set up a payment plan with both IRS and NY state. Don't just not file because you can't pay, that makes penalties way worse. File on time even if you can't pay and then work out payment arrangements.
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