Where to pay unemployment taxes - NYS Department of Labor guidance needed
I'm confused about where I'm supposed to pay unemployment taxes. I received unemployment benefits for about 6 months last year and now I'm getting ready to file my taxes. Do I pay these through the regular IRS process or is there something special I need to do with NYS Department of Labor? I didn't have any taxes withheld from my weekly payments because I needed the full amount at the time. Now I'm worried I'm going to owe a lot and don't know the proper procedure.
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Sara Unger
Unemployment benefits are taxable income that you report on your regular federal and state tax returns. You don't pay taxes directly to NYS Department of Labor - they just administered the benefits. The IRS treats unemployment as ordinary income, so you'll include it on your 1040 form. NYS Department of Labor should have sent you a 1099-G form showing the total amount you received in benefits.
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Tyler Murphy
•Thank you! I haven't received my 1099-G yet though. When should I expect it?
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Butch Sledgehammer
You should receive your 1099-G by January 31st. If you don't get it, you can download it from your my.ny.gov account where you filed your weekly claims. The form will show the total unemployment compensation you received during the tax year. Since you didn't have taxes withheld, you'll likely owe money when you file, so be prepared for that.
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Freya Ross
•ugh same situation here, didn't withhold anything and now I'm dreading tax time
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Leslie Parker
Wait I thought unemployment wasn't taxable?? This is news to me. I got unemployment for like 8 months and never had anything taken out. How much am I going to owe???
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Sara Unger
•Unfortunately unemployment has always been taxable income. The amount you'll owe depends on your total income and tax bracket. You might want to estimate using the IRS withholding calculator to see approximately what you'll owe.
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Sergio Neal
I had the same panic last year. What I did was call NYS Department of Labor to get my 1099-G early, but their phone lines are impossible to get through. I ended up using this service called Claimyr (claimyr.com) that actually got me connected to an agent within a few minutes. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. The agent was able to help me get my tax form quickly so I could start preparing.
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Tyler Murphy
•That sounds helpful, I've been trying to call NYS Department of Labor for days with no luck. Did it cost much to use that service?
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Sergio Neal
•It was worth it to avoid the headache of calling over and over. Way easier than spending hours on hold or getting disconnected.
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Savanna Franklin
Just a heads up - you can also set up quarterly estimated tax payments if you think you'll be on unemployment again this year. That way you won't get hit with a huge bill next tax season.
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Peyton Clarke
For what it's worth, I went through this exact same situation two years ago. I was terrified about owing a huge amount, but it ended up being manageable. If you can't pay the full amount when you file, the IRS has payment plan options available. Don't let the stress keep you from filing on time though - there are penalties for filing late that are worse than just owing money. Also, if you're still job searching, consider having taxes withheld from any future unemployment benefits to avoid this situation again.
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