NY unemployment tax mystery - paid taxes upfront but refund vanished, what gives?

yeah the withholding is usually only like 10% which doesn't cover all the taxes you owe. its stupid and they should warn people better. i learned this the hard way last year too and ended up owing a bunch 😤

After spending WEEKS trying to get through to ny unemployment about a similar tax issue, I found this service called Claimyr (claimyr.com) that got me connected to an actual human at the unemployment office in like 20 minutes. They literally called for me and then connected me when they got someone. Talking to an agent finally got my tax situation sorted out and saved me so much time and stress. Here's a video of how it works: https://youtu.be/Rdqa1gKtxuE

The tax witholding on unemployment is federal only (10%) and doesnt account for state taxes or the full federal amount you might owe depending on other income. Its a system designed to confuse us tbh 😡

Same boat my dude. My refund went from $2300 to $475 after adding unemployment. The lady who did my taxes said unemployment only withholds federal at 10% but your actual tax rate is probably higher AND they don't withhold state taxes at all. Its a cruel joke.

Let me break this down for everyone struggling with unemployment tax issues: The withholding from unemployment benefits is typically only 10% for federal taxes. This is often insufficient because: 1. Your actual tax bracket may be higher than 10% depending on total annual income 2. No state taxes are usually withheld at all (in most states) 3. Unemployment benefits are fully taxable income 4. Tax credits and deductions can be affected by your total income Your best options are: - Adjust other withholdings from current employment to compensate - Make quarterly estimated tax payments to avoid this issue next year - Contact NY unemployment directly to understand your specific situation Getting through to NY unemployment is notoriously difficult, but I've heard good things about claimyr.com as a service that can connect you with a live agent. Another thing to consider: check if you qualify for the Earned Income Tax Credit or other credits that might offset some of this tax hit. The tax code is complicated and unemployment taxation is particularly confusing.

Unemployment is taxable income and the withholding is waaaaay less than what you actually owe. When ur working normal job ur employer withholds based on ur W-4 and estimated tax bracket. UE just takes a flat 10% which is almost never enough. Its a scam 🤡

I don't even bother with the withholding option anymore. I just save 25% of every unemployment payment in a separate account for taxes. Works better than their broken system.

Has anyone tried calling the ny unemployment tax department directly? I've been trying all week and can't get a human!

its because unemployment benefits are considered taxable income and get added to your total income for the year which can push you into a higher tax bracket. the withholding usually isnt enough to cover the actual amount owed. welcome to american taxation 101 where nothing makes sense and everything hurts 🙃

the tax withholding on unemployment is a JOKE. its only 10% federal and ZERO state tax (at least in NY). And thats if you even opt in! Most people dont realize they need to manually select it when they apply. I had to pay $3k in taxes last year cause of this garbage system.

Theres a special tax credit for people who had unemployment income in 2022 that might help. ask your tax person about it or check the IRS website. It doesnt solve everything but might get u a bit more back.

Happened to me too. Called the ny unemployment office for DAYS with no luck getting through. Finally just had to accept the smaller refund. The whole system is designed to make us suffer tbh.

The witholding on unemployment is a flat 10% but ur actual tax bracket might be like 22% or 24% depending on ur total income. Plus they don't withhold state tax AT ALL. its totally misleading and they know it!!!

This happened to me & my wife. We both lost our retail jobs and got UE in 2021. Had a CPA explain that the withholding is just 10% federal and doesn't account for state taxes or your actual tax bracket. Biggest advice: adjust your W-4 at your current job to withhold extra if you're still getting unemployment.