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Maya Diaz

Do you have to pay taxes on pandemic unemployment benefits from NYS Department of Labor?

I got unemployment benefits during 2021-2022 and I'm still confused about the tax situation. I received around $18,000 total from NYS Department of Labor over those months when everything was shut down. My accountant is asking for my 1099-G but I can't find it anywhere on my.ny.gov portal. Did anyone else have trouble finding their tax documents? Also, I heard there was some kind of tax forgiveness for the first $10,200 but I'm not sure if that applies to regular state benefits or just the federal stuff. Really don't want to mess this up with the IRS.

Yes, unemployment benefits are taxable income at both federal and state levels. NYS Department of Labor should have issued you a 1099-G for each year you received benefits. You can usually download it from your my.ny.gov account under the 'Tax Information' section. The $10,200 exclusion you mentioned was only for federal taxes and only applied to 2020 unemployment benefits, not 2021-2022.

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Maya Diaz

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Thanks! I found the 1099-G under a different menu than I was looking. So I do owe state taxes on the full amount for NY then?

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same boat here, got benefits in 2021 and was shocked when I had to pay taxes on it all. nobody told me to set aside money for taxes when i was getting the payments

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You can actually have taxes withheld from your weekly unemployment payments if you request it when filing your weekly claims. It's usually 10% for federal. Might be worth knowing for the future.

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I had a nightmare trying to get my 1099-G from NYS Department of Labor last year. The website kept crashing and when I called they said I had to wait for it to be mailed. If you still can't find yours online, you might need to call them directly. I used a service called claimyr.com that helped me get through to an actual agent - they have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Saved me hours of busy signals.

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How much did that cost? I've been trying to reach NYS Department of Labor for weeks about my tax documents.

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It was worth it for me since I needed to resolve the issue quickly for my tax filing deadline. Much easier than the endless phone tree.

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Just a heads up - if you received any of the enhanced federal benefits during the pandemic (like the extra $600 or $300 weekly), those are also taxable. Make sure your 1099-G includes everything you received, not just the regular state unemployment amount.

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