NY unemployment tax withholding suddenly started - how to stop it?

same thing happened to me but in reverse! I had taxes taken out at first but then they suddenly stopped. Check your account settings under "payment preferences" - theres a tax withholding option there that you can toggle. It might have gotten flipped somehow. The NY unemployment system is notorious for random glitches.

After struggling for weeks with the same issue, I finally found a solution! I used this service called Claimyr (claimyr.com) that got me connected to a live agent after being stuck on hold forever. The agent was able to change my tax withholding setting immediately once I got on the phone. Talking to an agent got my full payment restored so fast - they even issued a correction for the previous payments where taxes were incorrectly withheld. Check out this video too https://youtu.be/Rdqa1gKtxuE

There's a form you need to submit to change your tax withholding status. It's called the W-4V for federal. You can download it from the IRS website, fill it out and mail it in. For state taxes, there might be a separate form depending on your state.

This exact issue happen to me! For me it was becus when they did that system update in June, it reset everyones withholding preferences to the default (which is to withhold taxes). You HAVE to call them to fix it, theres no way to change it online anymore. I spent 4 days trying to get through the phone system 😭

You know what's funny? Youre gonna owe those taxes anyway when you file next year. Might be better to just let them withhold it now rather than getting hit with a big tax bill later. Just saying... 🤷‍♂️

The NY unemployment system is literally the worst. They make everything impossible to figure out on purpose I swear. I had a similar issue last year and the ONLY solution was talking to an agent. But good luck getting through their phone system 🤡

Actually, this is a known issue with the NY unemployment system right now. There was a software update in early July that reset many people's tax withholding preferences. The department knows about it but they've been slow to fix it. Your best bet is to keep calling until you get through to a live person who can manually override it in the system.

Let me solve this for you with the exact steps I took to fix the same problem: 1) First, don't waste time with the online portal. There is NO way to change tax withholding online despite what some people say. 2) You need to speak with a live agent who has access to the backend system where this setting is controlled. 3) The regular phone line is practically useless because of the volume of calls. After 20+ attempts over two weeks, I finally got through using claimyr.com which bypassed the hold system. 4) When you get an agent, specifically ask them to "update your tax withholding preferences in the benefits payment system" - using this exact language helped my agent know exactly what to do. 5) They should be able to make the change immediately and it will apply to your next payment. 6) Ask them to review if you're eligible for retroactive adjustment on the payments where taxes were incorrectly withheld. Hope this helps! The NY unemployment system is a nightmare, but there are ways through it if you're persistent.

ppl be worried about tax withholding meanwhile my entire claim has been "pending review" for 9 weeks with zero payments. consider yourself lucky lol

I just fixed this exact problem last week! The tax withholding option is definitely NOT available online anymore. You must call and speak to a tier 2 agent (not the first person who answers). Be sure to mention it's about "tax withholding preferences" specifically. The first agent I spoke with didn't know how to help, but when they transferred me to tier 2, it was fixed in like 2 minutes.

have you tried checkin your spam folder? sometimes they send emails about account changes that end up in spam. i got one when my withholding changed.

According to the ny unemployment website, they're required by federal law to give you the OPTION of withholding, but they can't just start doing it without your consent. Sounds like a system error to me.

why would u NOT want them to withhold taxes? ur just setting urself up for a big tax bill next april... unemployment is taxable income 🤦‍♀️