Why is ny unemployment still taking out taxes if we don't need to report it anymore?

Bro ur brother is giving u bad info. Unemployment benefits ARE taxable income. The tax exemption was only for 2020 and 2021 during covid. For 2023 tax year (which you'll file in 2024), unemployment benefits are 100% taxable again. The govt is actually doing you a favor by withholding taxes now so u don't get hit with a big tax bill next April.

After spending WEEKS trying to get through to someone at unemployment (literally calling 50+ times), I finally found a service called Claimyr that got me through to a real person in less than an hour. They call for you, wait on hold, then connect you when a human answers. It's the best money I've ever spent to finally get my benefits paid quickly. Saved me so much stress! Here's a video explaining how it works: https://youtu.be/Rdqa1gKtxuE

This is one of those things that changes all the time and nobody ever knows what's currently true 🙄 The tax situation with unemployment has changed like 3-4 times in recent years. When I was on UI in 2021, it was partially non-taxable (up to $10,200 I think). Before that it was fully taxable. Then during peak covid they changed it again. Now it's back to being taxable. The whole system is designed to be confusing AF.

You can actually change your tax withholding preferences on your unemployment account. Just log into your NY unemployment portal, go to payment options, and there should be a section about tax withholding where you can opt out. BUT like others said, you probably shouldn't because you'll just owe it all next April anyway.

I WISH unemployment was non-taxable!! The system is so broken. They take forever to approve claims, make it impossible to talk to anyone, and then tax the tiny amount they give you which isn't even enough to live on in the first place! 😤 And half the time the website doesn't even work right! I've been on unemployment 3 different times in NY and it's always a nightmare.

Here's what you need to know about unemployment benefits and taxes: - Unemployment benefits ARE taxable income at the federal level for 2023 and beyond - The temporary tax exemption only applied during COVID (2020-2021) - New York State ALSO taxes unemployment benefits (some states don't) - The standard withholding is 10% federal + additional for state - You can adjust your withholding, but you'll owe the taxes eventually - When you file taxes next year, you'll get a 1099-G form showing all your unemployment income If you're struggling to get questions answered or resolve issues with your claim, I highly recommend using claimyr.com to get through to a live agent. The phone lines are completely overwhelmed and this service saved me weeks of frustration. Also, don't forget to check if you qualify for the Earned Income Tax Credit when you file next year - sometimes unemployment recipients can still qualify depending on your other income.

ur brother is confusing federal and state taxes maybe? some states don't tax unemployment at all (not NY tho) but the federal govt definitely does. That's why they take 10% out.

Check ur withholding on the unemployment website. u can choose to not have taxes taken out BUT YOU WILL REGRET IT LATER!!!! trust me on this one 😭

The real question should be why is unemployment so freakin LOW in NY compared to how expensive everything is?!? The max benefit is like $540/week before taxes which is a joke if you live anywhere near NYC.

My tax guy told me that you have to claim unemployment on your taxes. You should probably double check with an actual professional instead of listening to your brother lol

anybody else notice how the ny unemployment website is down like every other weekend for "maintenance"? 🙄 like when else are ppl gonna have time to deal with this stuff??

Just wanted to share my experience - I was on unemployment from Nov 2022 until March 2023. I had taxes taken out of every payment. When I did my taxes (early filer here), I definitely had to report the unemployment income and pay taxes on it. Your brother might be thinking of the special exemption they had during covid, but that's been gone for a while now.

Just to add some clarity here - I work as a tax preparer and can confirm that unemployment benefits are absolutely taxable for 2023. The COVID-era exemption (which was up to $10,200 for 2020 only) is long gone. NY takes out 10% federal withholding plus state taxes. You can opt out of withholding in your online account, but I STRONGLY advise against it unless you're setting aside money yourself. I've seen too many clients get hit with massive tax bills they couldn't afford. Better to have it taken out now and potentially get a small refund than owe thousands later. Also, if you're having trouble reaching DOL by phone, there are legitimate callback services that can help - just make sure you're using reputable ones.