NY unemployment tax bill from 2021 - got charged $1300 suddenly

Yes, this is unfortunately happening to a lot of people right now. NY State is conducting unemployment tax audits from 2021-2022 and sending these bills out. When you received unemployment, you had the option to have taxes withheld (usually 10%), but many people didn't realize this wasn't enough to cover their full tax liability, especially if they had other income that year. The bill is likely legitimate.

got the same thing last month! $970 for me...totally blindsided by it. thought all that 2021 stuff was DONE with!!

I'm a tax preparer, and I can explain what's happening here. In 2021, the standard withholding for unemployment was only 10% federal and often nothing for state taxes. Many people didn't realize NY State taxes were not being withheld at all, or not at a sufficient rate. The state is now catching up on processing these discrepancies. You have several options: 1. Verify the amount is correct by checking your 2021 tax return 2. If correct, set up a payment plan (they usually offer up to 36 months) 3. If you believe there's an error, file for a reassessment with proof Don't ignore it - penalties will add up quickly after the 30-day window.

TOTAL SCAM!! I got one of these 2 months ago for $1876 from 2022! The deptartment can't even process claims correctly and now they're sending fake bills to make up budget shortfalls. Our tax dollars at work LOLOL

I went through this exact situation back in January. The bill was for $1,450 from my 2021 unemployment. Called the tax department about 15 times and couldn't get through to anyone who could actually help. Was put on hold forever then disconnected every time. Finally used Claimyr (claimyr.com) to get through to an actual representative. They have this service that calls for you and connects you when there's an agent available. The video demo shows how it works: https://youtu.be/Rdqa1gKtxuE Once I got through, I was able to set up a payment plan for 24 months which made it much more manageable. The rep also explained exactly how they calculated the amount so I could verify it was correct. Definitely recommend calling rather than trying to handle it by mail.

my brother got same letter last week. he said if u call them directly sometims they can reduce the amount u owe if u explain ur situation. worth a try

I think they're sending these out to everyone who collected in 2021. My letter said $2,100!!! I nearly had a heart attack. But when I checked my tax return it turns out I never reported Box 1 of my 1099-G. I had forgotten I even got unemployment that year since it was just for 2 months. Check your return carefully - might be a legitimate bill.

anyone know if they can garnish wages if u dont pay? my friend told me to just ignore it but that sounds risky

Quick update that might help everyone here: For 2021 specifically, if your AGI was under $70,000 (single) or $150,000 (married filing jointly), you might qualify for the NY Tax Department's Offer in Compromise program. This could potentially reduce your tax bill. You'll need to provide financial documentation showing hardship, but it's worth exploring if the full amount is impossible for you to pay. The form to request this is DTF-5, which you can find on the NY Tax Department website.

how do you even check what they're claiming? my letter didnt have ANY breakdown showing how they calculated the amount!!

Update: I finally got through to someone at the tax department! For anyone else dealing with this, I set up a 36-month payment plan ($36/month) which is much more manageable than the lump sum. They verified the amount was correct - turns out I had selected federal withholding but not state withholding when I applied for unemployment. Lesson learned the hard way!