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
AuthorI 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
AuthorThat'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
AuthorAt least we're not alone in this! Hopefully it won't be as bad as we think.
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