NYS Department of Labor unemployment benefits - was unemployment taxable 2021 and need help with taxes
I'm trying to figure out my 2021 taxes and I'm confused about whether my unemployment benefits from NYS Department of Labor were taxable that year. I received UI benefits for about 6 months in 2021 after getting laid off from my retail job. I never had taxes withheld from my weekly payments because I didn't know I could. Now I'm worried I owe a huge amount. Did anyone else deal with this? I heard there might have been some special rules for 2021 but I can't find clear information anywhere.
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Ava Thompson
Yes, unemployment benefits were generally taxable in 2021, but there was an important exception. The American Rescue Plan Act excluded the first $10,200 of unemployment compensation from federal taxes for people with adjusted gross income under $150,000. NYS Department of Labor benefits would have been included in this. You should have received a 1099-G form showing the total amount you received.
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Dmitry Volkov
•I did get the 1099-G but I thought that meant I definitely owed taxes on all of it. So if I made less than $150k (which I definitely did), the first $10,200 isn't taxable? That's a huge relief!
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CyberSiren
same boat here, got unemployment for like 8 months in 2021 and panicked when i saw the 1099-G form. turns out most of mine wasnt taxable because of that $10,200 thing. saved me probably $1500 in taxes
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Miguel Alvarez
•You still need to be careful with state taxes though. New York state didn't follow the federal exclusion, so you still owe state taxes on the full amount of NYS Department of Labor benefits you received in 2021.
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Zainab Yusuf
This is so confusing!! I received $14,000 in unemployment from NYS Department of Labor in 2021 and I'm freaking out about my taxes. So the first $10,200 isn't taxable federally but ALL of it is taxable for New York state? Why do they make this so complicated? I should have had taxes withheld but nobody told me I could do that when I filed my claim.
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Ava Thompson
•When you file your weekly claims, there's usually an option to have federal and state taxes withheld. For 2025 claims, you can request 10% federal and whatever NY state rate applies. It's easier than dealing with a big tax bill later.
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Connor O'Reilly
I had such a hard time getting through to NYS Department of Labor to ask about tax withholding options when I was on unemployment in 2021. Their phone lines were constantly busy and the online chat never worked. I ended up using this service called Claimyr (claimyr.com) that helped me get through to an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Finally got my tax questions answered and set up withholding for the rest of my claim period.
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Zainab Yusuf
•Did that actually work? I've been trying to call NYS Department of Labor about setting up withholding for my current claim and can never get through.
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Connor O'Reilly
•Yeah it worked great for me. You just tell them what you need help with and they handle getting you connected to the right department. Way better than sitting on hold for hours.
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Yara Khoury
ugh the tax situation for 2021 unemployment was such a mess. i remember having to amend my return because i filed before they announced the $10,200 exclusion. at least now i know to have taxes withheld if i ever need unemployment again
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