Is unemployment considered unearned income for NYS Department of Labor purposes?
I'm trying to figure out if my unemployment benefits count as unearned income. I'm applying for some assistance programs and they're asking about unearned income sources. Does anyone know if NYS Department of Labor unemployment payments fall into this category? I've been getting UI for about 6 weeks now and want to make sure I'm reporting everything correctly on these applications.
9 comments


Ashley Adams
Unemployment benefits are generally considered unearned income for most purposes. The NYS Department of Labor payments you receive aren't wages from employment, so they fall under the unearned income category. This affects things like SNAP applications, Medicaid eligibility, and other assistance programs. Make sure you report your weekly benefit amount when they ask about unearned income.
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Zoe Gonzalez
•Thanks! So I should list my weekly benefit amount when they ask about unearned income sources then?
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Alexis Robinson
yeah its unearned income but some programs treat it differently than other types. like social security or disability payments. depends what your applying for
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Aaron Lee
For federal tax purposes, unemployment benefits are taxable income but they're classified as unearned income. NYS Department of Labor benefits don't have taxes automatically withheld unless you request it, so you'll need to account for that when filing. Most assistance programs will count your UI benefits as unearned income when determining eligibility.
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Chloe Mitchell
•Wait, they don't automatically take taxes out? I've been getting benefits for 2 months and haven't thought about taxes at all!
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Aaron Lee
•No, you have to request tax withholding when you file your initial claim or update your preferences in the my.ny.gov portal. Otherwise you'll owe taxes when you file your return.
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Michael Adams
I had so much trouble getting through to someone at NYS Department of Labor to ask questions like this. Spent hours calling and either got busy signals or hung up on. Finally used claimyr.com to get connected to an actual agent - they have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. The agent was able to explain exactly how my benefits would be classified for different programs.
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Zoe Gonzalez
•How does that service work? I've been trying to reach someone for weeks about various questions.
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Natalie Wang
The whole system is so confusing! They should make this stuff clearer when you first apply. I'm dealing with the same thing trying to figure out what counts as what for different applications. Why can't they just give us a simple breakdown of how our benefits affect other programs?
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