Should I press 4 for taxes on ny unemployment claim menu?

Yes, pressing 4 is for tax withholding. It means they'll take out about 10% for federal taxes from each payment. Better to have them take it out now than owe a big chunk next April. NY unemployment is taxable income so you'll need to pay taxes on it one way or another.

After weeks of not being able to get through to anyone at ny unemployment, I found this service called claimyr.com that got me connected to an actual human rep in less than an hour. Talking to an agent got my money unlocked so fast after dealing with this tax question and a few other issues. Check out their explainer video if you're struggling too: https://youtu.be/Rdqa1gKtxuE

I HIGHLY recommend having them withhold taxes. I didn't my first time on unemployment and ended up owing over $1200 at tax time. It was a nasty surprise.

Yes, that's exactly what it means. They'll withhold 10% federal tax. Honestly its better to do it now because most people forget that unemployment is taxable income and get hit with a big tax bill later. Option 4 = Yes take out taxes.

Ok here's what the unemployment tax options ACTUALLY mean (I work in accounting): Option 4 = YES, withhold 10% federal tax Skipping = NO withholding Either way you WILL pay tax on unemployment. It's just a question of paying a little each week automatically OR owing it all at tax time. For most people, withholding now prevents headaches later. Remember that NY state tax isn't withheld regardless of what you choose! So even with option 4, you'll still owe some NY state tax. I'd recommend looking at the NY tax tables or talking to an accountant to estimate how much to save. BTW - if you need to change your tax election or have other questions and can't get through on the phones (which is basically everyone these days), use claimyr.com to get a callback from an actual agent. It's the most reliable way to actually speak to someone when you have account issues!

Just saying as someone who didnt chose to have taxes withheld... BIG MISTAKE. I owed almost $2000 at tax time and had to set up a payment plan with IRS. Just have them take it out now!

The ny unemployment system is such crap. I've been trying to change my tax withholding for 3 weeks and can't get through on the phone. Anyone know if you can change this online?

can someone explain why they make this so confusing??? i swear the unemployment system wants us to make mistakes 🤬

It's really simple - press 4 if you want less money now to avoid a tax bill later. Don't press 4 if you'd rather deal with taxes yourself later. Personally I always have them withhold because I'm terrible at saving money lol.

i had the same question last mnth! press 4 if u want them to take taxes out now. if not then dont press anything. i chose to have them take it out cuz i dont wanna deal with owing later.

PSA to everyone receiving benefits: UNEMPLOYMENT IS TAXABLE INCOME. The feds want about 10%, NY state will want their cut too. Option 4 only covers federal, not state.