What can you use unemployment money for - NYS Department of Labor spending rules?
Got approved for unemployment benefits last week and wondering if there are any restrictions on what I can spend the money on? I know it's meant to replace income while I'm looking for work, but are there specific NYS Department of Labor rules about what you can and can't buy with unemployment payments? Like can I use it for rent, groceries, car payments, etc? Don't want to get in trouble or mess up my claim status.
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Ryan Vasquez
There are no spending restrictions on unemployment benefits from NYS Department of Labor. Once the money is direct deposited into your account, it's treated like any other income. You can use it for rent, utilities, food, transportation, medical bills - whatever you need to survive while job hunting. The only requirement is that you continue filing your weekly claims and meet the job search requirements.
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Sarah Ali
•That's a relief! I was worried there might be tracking or something. Thanks for clearing that up.
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Avery Saint
yeah basically its your money once you get it, no different than a paycheck. i used mine for everything - rent food gas bills etc when i was unemployed for 3 months last year
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Taylor Chen
The key thing to remember is that unemployment benefits are considered taxable income, so you'll get a 1099-G form from NYS Department of Labor at tax time. You can choose to have taxes withheld from your weekly payments or pay them when you file your return. But as far as spending goes, there are zero restrictions - it's meant to help you maintain your basic living expenses while searching for new employment.
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Keith Davidson
•Wait, so I should be having taxes taken out? I didn't know that was an option when I filed my initial claim.
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Taylor Chen
•You can update your tax withholding preference by logging into your my.ny.gov account and modifying your claim settings. It's 10% federal withholding if you choose it.
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Ezra Bates
Just make sure you're actually looking for work and documenting it properly! I got hit with a disqualification notice because my job search log wasn't detailed enough. Had to appeal and everything. The money part is easy - spend it however you need to. But keeping up with the work search requirements is crucial or they'll want their money back.
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Sarah Ali
•How detailed does the job search log need to be? I've been applying online but wasn't sure how much info to record.
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Ana Erdoğan
If you're having trouble reaching someone at NYS Department of Labor to ask questions about your claim, I had good luck using Claimyr (claimyr.com). They help you get through to an actual agent instead of sitting on hold forever. There's a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Saved me hours of calling and getting hung up on.
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Avery Saint
•never heard of that but might be worth trying, calling nysdol is basically impossible
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Sophia Carson
Same question but wondering about things like paying off credit cards or student loans with unemployment money? Technically it's income replacement but curious if anyone knows if that could cause issues?
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Ryan Vasquez
•No issues at all. Your unemployment benefits are yours to use for any expenses. Paying off debt is actually financially smart if you can manage it while covering your basic needs.
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