NYS Department of Labor federal unemployment tax rate - how much is being deducted?
I just got my first unemployment check from NYS Department of Labor and I'm confused about the federal tax deduction. The amount seems higher than I expected. Can someone explain how much the federal unemployment tax rate is and if there's a way to adjust it? I selected to have taxes withheld when I filed my claim but I want to make sure they're taking the right amount. I don't want to owe a bunch at tax time but I also don't want them taking too much.
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Tony Brooks
Federal income tax withholding from unemployment benefits is 10% if you elect to have it withheld. This is optional - you can choose to have no federal taxes taken out and pay quarterly or at tax time instead. NYS Department of Labor doesn't automatically withhold federal taxes unless you specifically request it during your initial claim filing or change it later in your account.
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Jade Lopez
•Thanks! So it's a flat 10% rate? I thought it might be based on my income bracket or something. Can I change this setting if I decide 10% is too much or too little?
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Ella rollingthunder87
Yeah you can change your withholding election anytime by logging into your my.ny.gov account and updating your payment preferences. Just remember unemployment benefits are fully taxable as regular income so you'll owe taxes on the full amount either way.
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Yara Campbell
•This is important - a lot of people forget unemployment is taxable and get surprised at tax time. Better to have something withheld than owe thousands later.
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Isaac Wright
wait so unemployment is taxed?? i thought it was assistance money and wouldn't be taxed like welfare or something. this is my first time filing and nobody told me this
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Tony Brooks
•Yes, unemployment benefits are considered taxable income by the IRS. It's different from welfare programs - you'll receive a 1099-G form at the end of the year showing how much you received. Definitely recommend having the 10% withheld if you can afford the smaller weekly payment.
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Maya Diaz
I had such a hard time getting through to NYS Department of Labor to ask about this same question. Spent hours on hold and kept getting disconnected. Finally used a service called Claimyr that got me connected to an actual agent in like 15 minutes. You can check it out at claimyr.com - they have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Super helpful for getting answers about tax withholding and other claim questions.
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Tami Morgan
•Never heard of that before but might be worth trying. The NYS Department of Labor phone system is absolutely terrible. Did they charge you anything for the connection?
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Maya Diaz
•It's not free but honestly worth it when you need to actually talk to someone. Way less frustrating than the regular phone maze.
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Rami Samuels
Just FYI you can also have state taxes withheld too if you want. I think NY state withholding is optional as well. Might as well get both taken out if you're worried about owing at tax time.
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