NYS Department of Labor unemployment payments - do I need to file taxes on benefits received?
I've been receiving unemployment benefits from NYS Department of Labor since September and just realized I might need to report this income on my taxes. I received about $8,200 total in UI payments last year. Do I need to file a tax return for unemployment benefits? I'm really confused about whether this counts as taxable income and if there are any forms I need from NYS Department of Labor.
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Aria Washington
Yes, unemployment benefits are considered taxable income by both federal and New York state. You should receive a 1099-G form from NYS Department of Labor showing the total amount you received in 2024. This form will be available in your my.ny.gov account under documents, usually by the end of January. You'll need to report this income when filing your tax return.
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Rajiv Kumar
•Thank you! I didn't know about the 1099-G form. Should I wait for that before filing my taxes?
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Liam O'Reilly
wait unemployment is taxable??? i thought it was like welfare or something
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Chloe Delgado
•Unfortunately yes, unemployment is taxable income. It's different from programs like SNAP or Medicaid which aren't taxable. The good news is you can have taxes withheld from your weekly unemployment payments if you want to avoid owing money at tax time.
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Ava Harris
I had the same question last year! NYS Department of Labor should have given you the option to have federal taxes withheld when you first filed your claim. If you didn't elect to have taxes taken out, you might owe money when you file. The withholding rate is 10% for federal taxes. New York state doesn't withhold from unemployment benefits but you still need to pay state taxes on it.
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Rajiv Kumar
•I think I said no to withholding because I needed the full amount each week. How much might I owe in taxes on $8,200?
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Aria Washington
•It depends on your total income for the year and your tax bracket. If unemployment was your only income, you might not owe much since $8,200 is below the standard deduction. But if you had other income from work, you could owe several hundred dollars.
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Jacob Lee
The IRS and NYS tax department treat unemployment just like regular wages for tax purposes. I learned this the hard way my first time collecting UI. Make sure you keep all your NYS Department of Labor documentation including your 1099-G when it comes out. If you're having trouble accessing your 1099-G through the my.ny.gov portal, I used a service called Claimyr (claimyr.com) to get through to an actual NYS Department of Labor agent who helped me with document issues. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works.
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Emily Thompson
•How much does that service cost? I've been trying to call NYS Department of Labor for weeks about my 1099-G and can never get through.
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Jacob Lee
•It's worth checking out their site for current info. Way easier than sitting on hold for hours or getting disconnected. They specialize in getting you connected to actual NYS Department of Labor reps.
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Sophie Hernandez
this whole system is ridiculous, they make you jump through hoops to get unemployment then tax you on it like its some kind of bonus income when you're already struggling financially
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Liam O'Reilly
so if i got unemployment in 2024 i definitely need to file taxes even if i dont usually file?
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Chloe Delgado
•If unemployment was your only income and it was under $13,850 (the 2024 standard deduction), you're not required to file federal taxes. But you might want to anyway because you could get money back if you had taxes withheld. For New York state, the threshold is different so check with a tax professional.
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