How to file taxes if you received unemployment benefits from NYS Department of Labor
I received unemployment benefits for about 8 months last year after getting laid off from my marketing job. Now I'm trying to figure out how to handle this on my tax return. I got a 1099-G form from NYS Department of Labor showing I received $18,400 in benefits. Do I need to report all of this as income? I'm worried about owing a huge tax bill since they didn't withhold much. Has anyone dealt with filing taxes after receiving UI benefits? What should I expect?
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Daniel Washington
Yes, unemployment benefits are taxable income and you'll need to report the full amount on your federal and state returns. The 1099-G shows what you received. If you didn't have taxes withheld, you might owe money when you file. You can set up a payment plan with the IRS if needed.
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Lauren Zeb
•I think I only had like 10% withheld for federal taxes. Should I have done more?
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Aurora Lacasse
I went through this last year after being on unemployment for 6 months. The 1099-G form from NYS Department of Labor goes on line 7 of your 1040 form with your other income. If you're using tax software like TurboTax, there's usually a section specifically for unemployment income where you enter the 1099-G information.
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Anthony Young
•Did you end up owing a lot? I'm scared to even calculate what I might owe.
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Aurora Lacasse
•I owed about $1,200 but I was able to set up a payment plan. It wasn't as bad as I thought it would be.
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Charlotte White
Wait I'm confused - I thought unemployment was supposed to help people who lost their jobs, but then they tax it? That seems messed up. I've been putting off doing my taxes because I don't understand this stuff.
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Daniel Washington
•I know it seems unfair, but unemployment benefits have always been considered taxable income by the IRS. The good news is you can usually deduct job search expenses if you itemize.
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Admin_Masters
If you're having trouble getting through to the IRS about tax questions, I found this service called Claimyr (claimyr.com) that helps people reach government agencies by phone. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. I used them to get through to NYS Department of Labor when I had issues with my claim, and they also help with IRS calls during tax season.
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Lauren Zeb
•That's interesting - I might need that if I run into problems. Thanks for sharing!
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Matthew Sanchez
Just make sure you have all your documentation ready when you file. Keep the 1099-G form and any records of taxes you had withheld from your weekly claims. If you moved during the year while on unemployment, that can complicate things too.
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Ella Thompson
omg same situation here!! got laid off in march and was on UI until november. dreading tax time so much right now ðŸ˜
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Lauren Zeb
•At least we're not alone in this! Hopefully it won't be as bad as we think.
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