NYS Department of Labor unemployment benefits - are they taxable for 2021?
I got unemployment from NYS Department of Labor last year and I'm trying to figure out my taxes. Did anyone else have to pay taxes on their UI benefits for 2021? I heard there might have been some changes but I'm not sure what applies to New York unemployment specifically. My 1099-G shows about $8,600 in benefits and I'm worried this is going to mess up my refund.
11 comments
Join the conversation
Adrian Connor
Yes, unemployment benefits from NYS Department of Labor are generally taxable income. However, for 2021 there was a special exclusion - the first $10,200 of unemployment benefits were tax-free if your adjusted gross income was under $150,000. Since you received $8,600, that should all be excluded from your taxable income.
0 coins
Mikayla Davison
•Oh wow that's a relief! So I don't have to report any of it on my taxes then? Do I still need to include the 1099-G form when I file?
0 coins
Aisha Jackson
wait i thought all unemployment was taxable?? i paid taxes on mine throughout 2021 when i was getting weekly claims from nys department of labor
0 coins
Ryder Everingham
The tax exclusion was part of the American Rescue Plan Act. If you had taxes withheld from your NYS Department of Labor benefits during 2021, you might actually get a bigger refund now. The IRS automatically adjusted many returns that were filed before this law passed. You should still include your 1099-G when filing but the taxable amount will be reduced by the exclusion.
0 coins
Aisha Jackson
•so if i already filed my taxes early do i need to amend them or did the irs fix it automatically?
0 coins
Ryder Everingham
•Most people got automatic adjustments if they were eligible. Check your IRS account online or wait for any additional refund. You typically don't need to amend unless you have other changes to make.
0 coins
Lilly Curtis
This is so confusing! I was on standby status with NYS Department of Labor for part of 2021 and regular UI for the rest. Do the same tax rules apply to both types of benefits? And what about the extra federal money that was added to payments?
0 coins
Leo Simmons
I had similar tax questions about my unemployment benefits and couldn't get through to anyone at NYS Department of Labor or the IRS phone lines. After weeks of trying, I found this service called Claimyr at claimyr.com that actually got me connected to a tax specialist who could explain how the unemployment exclusion worked. They have a demo video at https://youtu.be/qyftW-mnTNI showing how it works. Really helped me understand what I needed to do.
0 coins
Lilly Curtis
•Did they charge a lot for that? I'm just trying to figure out if I owe money or if I'm getting more back.
0 coins
Leo Simmons
•It was worth it for me since I couldn't reach anyone the normal way and needed answers before the filing deadline. They connected me pretty quickly compared to trying to call directly.
0 coins
Lindsey Fry
Just remember that state taxes might be different from federal. New York state might still tax the full amount even if part is excluded federally. Double check your state return requirements too.
0 coins