NY unemployment 1099 confusion - were taxes taken from the $300 supplement payments?

yep they took taxes from the supplemental but not your regular benefits. its been like that for ever. its stupid that they dont ley you choose for both!

The supplemental payments ($300) have a mandatory 10% federal tax withholding - that's why you received $270 instead of the full $300. The remaining ~$22 difference might be from state taxes. However, this withholding should absolutely be reflected on your 1099-G in Box 4 (Federal income tax withheld). If it shows $0 there, that's incorrect and you should contact NYSDOL for a corrected form.

I had the EXACT same issue with my 1099-G this year! Called NYSDOL 47 times and couldn't get through until I used Claimyr (claimyr.com). Their service connected me to an agent in about 15 minutes. Showed my husband their video demo (https://youtu.be/Rdqa1gKtxuE) first because I was skeptical, but it actually worked. The agent explained that there was an error in their system where the supplement tax withholding wasn't being recorded properly on 1099s. They're sending me a corrected form. You definitely need to talk to someone to get this fixed before filing!

Let me clarify something here that might help. The NY unemployment $300 supplements have slightly different tax rules than your regular benefits: 1. For regular UI benefits, you can choose whether to withhold federal taxes (you chose not to) 2. For the $300 supplements in 2025, there's a standard deduction of approximately 2.67% that goes toward state taxes only (which explains why you got $292 instead of $300) 3. There is NO automatic federal tax withholding on the supplements anymore (this changed from previous years) What this means: Your 1099-G is likely correct showing $0 federal tax withheld. The difference between $300 and $292 is the state tax withholding, which wouldn't appear on your federal 1099-G form. You'll still owe federal taxes on the entire amount when you file.

Everyone here is overthinking this. The difference is probably just a processing fee for direct deposit or something. I wouldn't worry about it.

I'm so confused with all of this tax stuff too! I got my 1099-G and have no idea what I'm even looking at. Does this mean I have to pay all the taxes back now?? I thought they were already taken out! I'm panicking because I didn't save any money for taxes and now I don't know what to do. Will I go to jail if I can't pay?????

This happened to me too back in 2023. I had to go to the NYSDOL office in person to get it fixed because the phone system is useless. Took an entire day but they corrected my 1099 on the spot. I think they just have glitchy systems that don't record the withholding properly. Typical government incompetence if you ask me!

when i got my taxes done last year the guy at h&r block said just report whats on the 1099 and dont worry about it nobody checks that stuff anyway

After reading through all the comments, I want to correct my earlier response. The current NY supplement payments ($300) follow the 2.67% state tax withholding rule that another commenter mentioned. This changed in 2025 from previous years where federal tax was also withheld. Your 1099-G showing $0 federal withholding is correct if you opted out of federal withholding on your regular benefits. The $8 difference ($300 - $292) represents only the state tax portion. You'll still need to pay federal taxes on all benefits received when you file.

Just wanted to follow up - I received my corrected 1099-G today! The NYSDOL agent I spoke with (after using that phone service I mentioned) explained that they had a system-wide issue with reporting state tax withholdings on the supplement. My advice is definitely to call them about this. The corrected form makes a big difference for my tax situation.