Does unemployment count as gross income for NYS Department of Labor tax purposes?
I'm trying to figure out my tax situation and need to know if unemployment benefits count as gross income. I received UI benefits for about 6 months last year and I'm not sure how to handle this on my taxes. Do I need to report the full amount I received from NYS Department of Labor as income? Also wondering if there are any deductions I can take related to job searching while I was on unemployment. This is my first time dealing with unemployment benefits so I'm pretty confused about the whole tax situation.
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Laila Fury
Yes, unemployment benefits are considered taxable income by both federal and New York state. You should have received a 1099-G form from NYS Department of Labor showing the total amount you received. You'll need to report this as income on both your federal and state tax returns. The good news is you can have taxes withheld from your weekly benefits to avoid owing a large amount at tax time.
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Hazel Garcia
•I don't think I got a 1099-G form yet. When do those usually come out? Should I be worried if I haven't received it by now?
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Geoff Richards
You can access your 1099-G online through your my.ny.gov account where you file your weekly claims. Go to the tax documents section and it should be available for download. As for job search expenses, you may be able to deduct some costs like resume printing, travel to interviews, etc., but the rules changed in recent years so check with a tax professional.
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Simon White
•I had trouble accessing mine online last year. If you can't find it there, you can call NYS Department of Labor and request a copy, though good luck getting through on the phone!
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Hugo Kass
I was in a similar situation last year and it was such a headache trying to figure out the tax implications. One thing that really helped me was using Claimyr (claimyr.com) to actually get through to a NYS Department of Labor agent who could explain my specific situation. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Made it so much easier than trying to call the regular number over and over.
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Nasira Ibanez
•Never heard of that service before. Did they charge you anything to help get through to NYS Department of Labor?
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Hugo Kass
•Yeah there's a fee but honestly it was worth it to actually talk to someone who could answer my questions instead of being on hold forever or getting hung up on.
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Khalil Urso
just wanted to add that if you had ANY taxes withheld from your UI benefits you'll see that on the 1099-G too. i made the mistake of not having anything withheld and ended up owing like $800 at tax time
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Hazel Garcia
•Oh no! I didn't have any taxes withheld either. How do I calculate roughly how much I might owe?
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Myles Regis
The whole unemployment tax situation is ridiculous if you ask me. They take forever to process claims, make you jump through hoops for your benefits, and then want to tax you on money you received because you LOST YOUR JOB. It's like getting kicked while you're down.
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