What does unemployment affect - NYS Department of Labor claim impact on credit, taxes, future benefits?

Unemployment benefits don't appear on your credit report at all - they're not considered debt. For taxes, you'll get a 1099-G form from NYS Department of Labor showing what you received, and yes you'll owe federal taxes on it (NY doesn't tax unemployment). Employers can't access your UI records unless you give permission, though some background checks might ask about benefit history. The main thing that could affect you is if you have an overpayment that goes to collections.

been on unemployment twice and never had issues with credit or anything like that... the tax thing caught me off guard the first time though, definitely set aside some money for that

One thing to watch out for - if you're planning to apply for certain government jobs or positions requiring security clearances, they will ask about unemployment benefits. It's not disqualifying but you need to be honest about it. Also, some mortgage lenders might ask about your employment history for the past 2 years, so you'd need to explain any gaps covered by UI benefits.

Had a friend who got into trouble because they didn't report some freelance work while collecting. NYS Department of Labor found out somehow and hit them with a huge overpayment demand. That's the only way I've seen unemployment really mess someone up financially - when they weren't honest about their earnings on the weekly certification.

The system is so confusing though! Like what counts as work that needs to be reported vs what doesn't? I did some odd jobs for cash and wasn't sure if that needed to go on my weekly claim form. The instructions on the NYS Department of Labor website aren't super clear about every situation.

I was worried about this exact thing when I was dealing with a stuck claim that wouldn't process. Couldn't get through to anyone at NYS Department of Labor for weeks to ask questions. Finally used this service called Claimyr (claimyr.com) that actually got me connected to a real person who explained everything about reporting requirements and what could affect my benefits. They have a demo video at https://youtu.be/qyftW-mnTNI showing how it works. Made such a difference to actually talk to someone who knew the rules.

honestly the biggest thing unemployment affected for me was just my mental health... the uncertainty and constantly worrying about whether i was doing everything right. the actual practical impacts weren't that bad