How do I know if I'm getting a NY unemployment tax refund after being unemployed all year?
Hey everyone, I was on NY unemployment for the entirety of 2024 and I'm confused about tax refunds. I had taxes withheld from my weekly benefits but someone told me I might still get a refund from unemployment specifically? Is this a thing or are they confused? I filed my taxes already but didn't see anything about a separate refund from NYSDOL. Do they automatically process refunds if you overpaid somehow? Sorry if this is a dumb question, first time being unemployed this long.
17 comments
Benjamin Johnson
they dont give refunds from unemployment directly lol. you only get tax refunds from the IRS if u paid more taxes than u owed during the year. check ur tax return
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Victoria Scott
•Thanks! So there's no separate refund from unemployment itself? Just making sure I'm not missing out on money I should be getting.
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Zara Perez
The person who told you about an unemployment refund might be confusing a few different things: 1. Regular tax refund - If you had taxes withheld from your unemployment benefits and your total tax obligation for the year was less than what was withheld, you'd get a refund when you file your taxes. This comes from the IRS/NY Tax Dept, not NYSDOL. 2. Benefit adjustments - If NYSDOL determines you were underpaid benefits during your claim period, they might issue a retroactive payment, but this isn't technically a "refund." 3. Tax adjustments on unemployment - Sometimes there are legislative changes (like during COVID) where unemployment benefits receive special tax treatment, resulting in refunds to people who already filed. Unless you received an official notice from NYSDOL about an adjustment to your claim, there's no separate "unemployment refund" you need to apply for or expect.
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Victoria Scott
•This is super helpful, thank you! I think my friend might have been referring to something from the COVID era then. I'll just stick with the regular tax refund process and not worry about anything extra from NYSDOL.
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Daniel Rogers
I'm wondering the same thing!!! I got unemployment all of 2024 too and I'm STRESSED about taxes. I didn't have anything withheld because I needed the full amount to survive. Now I'm worried I'll owe thousands!!! Do they ever forgive unemployment taxes if you're still unemployed??? I can't pay a huge tax bill right now, I'm barely keeping my apartment!!
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Zara Perez
•Unfortunately, unemployment benefits are taxable income at the federal level and in New York State. If you didn't have taxes withheld, you will likely owe taxes when you file. You have options though: 1. IRS payment plans are available if you can't pay in full 2. You may qualify for the Earned Income Tax Credit which could offset some of what you owe 3. If you're experiencing serious financial hardship, you might qualify for an Offer in Compromise I recommend speaking with a tax professional or using a free tax prep service like VITA (Volunteer Income Tax Assistance) to maximize any credits you're eligible for.
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Aaliyah Reed
I went through this last year and got super confused too. What finally worked for me was calling and talking to someone directly. I sat on hold for like 3 hours though which was ridiculous! I eventually used this service called Claimyr (claimyr.com) and they got me through to an agent in about 15 minutes instead of waiting all day. They have a video showing how it works: https://youtu.be/Rdqa1gKtxuE The agent explained everything about how unemployment taxation works and cleared up my confusion. Turns out I was eligible for some additional benefits I didn't know about! Definitely worth talking to an actual person.
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Victoria Scott
•Thanks for the tip! I'll try giving them a call first, and if I can't get through, I might check out that service. Did they explain if there's a separate refund process or confirm it's just part of regular tax filing?
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Aaliyah Reed
•They confirmed it's just part of regular tax filing! There's no separate refund process for unemployment taxes specifically. The agent was really helpful and walked me through exactly how unemployment benefits affect tax returns. Saved me a lot of confusion!
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Ella Russell
The whole system is DESIGNED to be confusing on purpose!!! I was on unemployment in 2023 and 2024 and both years I got different answers about taxes. One agent told me I might get a refund, another said I definitely wouldn't. Then I ended up getting a small refund anyway! The entire NYSDOL is just making it up as they go along. Don't trust anything they say!!!
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Mohammed Khan
•While the unemployment system can certainly be confusing, there are specific tax rules that govern unemployment benefits. The refund you received was likely from your overall tax situation, not specifically from NYSDOL. Different tax situations can result in different outcomes year-to-year, which might explain the inconsistent results you experienced. If you had taxes withheld from your benefits at a rate higher than your actual tax liability for that income, you would receive that excess withholding back as part of your regular tax refund from the IRS/state, not as a separate refund from NYSDOL.
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Gavin King
Just wanted to mention I was in the same boat last year and I got a letter in April about a "monetary determination adjustment" that ended up giving me an additional payment. It wasn't technically a refund but it was extra money. It happened because they recalculated my base period wages and found I was eligible for a higher weekly benefit amount. So maybe check if you got all the correct benefit amounts too! Sometimes they make mistakes in their calculations.
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Victoria Scott
•Oh that's interesting! I should double-check all my benefit amounts then. Do you remember how you figured out there was a mistake? Did you have to request a review or did they just do it automatically?
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Gavin King
•It was automatic in my case! They sent me a letter saying they had reviewed my claim as part of some quarterly process they do. But if you think your benefits might have been calculated wrong, you can definitely request a review. Just log into your account and look at your monetary determination letter - it shows how they calculated your benefit amount based on your work history.
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Mohammed Khan
To clarify the tax situation with NY unemployment benefits: 1. Unemployment benefits are fully taxable income at both federal and NY state levels 2. If you opted to have taxes withheld from your weekly benefits (typically 10% federal and 2.5% state), those withholdings are credited toward your annual tax obligation 3. Your 1099-G form from NYSDOL shows the total benefits received and taxes withheld 4. Any refund would come through your normal tax filing process with the IRS and NY State Tax Department, not from NYSDOL directly 5. NYSDOL does sometimes issue retroactive payments if: - They determine your weekly benefit amount was calculated incorrectly - There was an adjudication decision in your favor - There was a system error that affected your payments These retroactive payments are separate from tax refunds and are related to the benefits themselves.
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Victoria Scott
•This is exactly what I needed to know! Thank you for breaking it down so clearly. I'll check my 1099-G and make sure everything looks right. I think I was definitely confusing tax refunds with potential benefit adjustments.
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Benjamin Johnson
my brother thought the same thing last year and there was no special refund. its just normal taxes, unemployment isnt special
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