NYS Department of Labor unemployment benefits - which payments are taxable for federal unemployment tax purposes?
I'm trying to figure out my taxes and I'm confused about which unemployment payments I received from NYS Department of Labor are actually taxable for federal unemployment tax purposes. I got regular UI benefits, some back pay from an appeal that was approved, and also received partial benefits while working part-time. My accountant is asking me to clarify which of these different types of payments count as taxable income. Has anyone dealt with this before? I want to make sure I'm reporting everything correctly to avoid problems with the IRS.
11 comments
Join the conversation
Alberto Souchard
All unemployment compensation you received from NYS Department of Labor is generally taxable income at the federal level. This includes your regular weekly benefits, any back payments from successful appeals, and partial benefits you received while working reduced hours. You should have received Form 1099-G showing the total amount paid to you during the tax year.
0 coins
Nia Watson
•Thanks! I did get the 1099-G form but the amount seemed higher than I expected. Does that include the back pay from my appeal too?
0 coins
Katherine Shultz
yeah i had the same confusion last year when i got unemployment. everything they pay you is taxable - regular benefits, back pay, even those little partial payments when you work part time. the 1099-G will show everything combined
0 coins
Marcus Marsh
•That's correct. The 1099-G reports all unemployment compensation paid during the calendar year, regardless of when the benefits were actually earned. So if you had an appeal approved in 2025 for benefits from 2024, those back payments would show up on your 2025 tax forms.
0 coins
Hailey O'Leary
I've been dealing with this mess for months! NYS Department of Labor makes it so complicated with all their different payment types. When I called to ask about my 1099-G they kept transferring me around and nobody could give me a straight answer about which specific payments were included in the total.
0 coins
Cedric Chung
•If you're having trouble reaching someone at NYS Department of Labor about your tax documents, I used a service called Claimyr that helped me get through to an actual agent. Check out claimyr.com - they have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Way easier than sitting on hold for hours.
0 coins
Hailey O'Leary
•I might have to try that because calling directly has been a nightmare. Did they charge you a lot for that service?
0 coins
Cedric Chung
•It was worth it to actually talk to someone who could explain my 1099-G breakdown. Much better than the endless phone tree.
0 coins
Talia Klein
wait so even the partial payments when you work part time count? i thought those might be different since you're still working
0 coins
Alberto Souchard
•Yes, partial unemployment benefits are still unemployment compensation for tax purposes. It doesn't matter that you were working part-time - any UI benefits paid by NYS Department of Labor are taxable income that must be reported on your federal return.
0 coins
Maxwell St. Laurent
Just went through this with my tax preparer. She said the key thing is that ALL unemployment benefits are federally taxable, but you might have state tax differences depending on your situation. The 1099-G from NYS Department of Labor should match what you report on your 1040.
0 coins