Will I qualify for NY unemployment tax break with under $10,000 in benefits?

Yes, you should be eligible for the 2025 tax exemption on unemployment benefits if you received less than $10,500 in benefits (which you did at $9,280). The exemption allows qualified recipients to exclude a portion of unemployment compensation from their federal taxable income. Since you filed as single with no dependents, you should see this reflected when you file your 2025 tax return - it's not something you receive separately throughout the year. The exemption is automatically applied when you file your taxes, but you need to report all unemployment income on your tax forms. Look for Form 1099-G from NYSDOL which shows your total unemployment compensation.

i got about $8500 last yr and my tax guy said i qualify so u should 2. but u dont get money for it now, its just that u wont owe taxes on that money when u file

The income threshold for the unemployment tax break in 2025 is $10,500 for single filers, so at $9,280 you're definitely eligible. But there's a misunderstanding here - you don't "get" the tax break as a separate payment. It's an exclusion, meaning you don't pay taxes on that unemployment income when you file your 2025 return. So to be clear: you won't receive any notification or separate payment for this. The benefit comes when you file your taxes and don't have to pay federal income tax on those unemployment benefits. You still need to report the income, but it won't be taxed. Also worth noting: NY state may still tax your unemployment benefits even if they're exempt from federal taxation. State and federal tax rules differ.

WAIT WHAT TAX BREAK??? Nobody told me about any unemployment tax break!!! I made $9,700 in benefits last year and already filed my taxes and PAID TAX on all of it!! Are you saying I didn't have to??? Can I file an amendment or something? This system is INSANE how they don't tell people important stuff like this!!

I went through this exact situation last year. The unemployment tax exemption isn't something you receive now - it gets applied when you file your taxes. Since your benefits were under the threshold ($9,280 is less than the $10,500 cutoff), you won't pay federal taxes on that income. One thing though - this exemption is only for FEDERAL taxes. New York State still taxes unemployment benefits regardless of the amount. So you'll still owe state taxes on that $9,280. Also, make sure you elected to have taxes withheld from your weekly benefits. If not, you might still owe some taxes on other income. The tax break just means the unemployment portion isn't counted as taxable income federally.

If unemployment was your only income and it was under $10,500, you likely won't owe federal taxes at all with the exemption. Even without the exemption, the standard deduction for a single filer is over $13,000 for 2025, which would cover your $9,280 anyway. You might still owe some NY state tax though. I struggled with reaching the NYSDOL for tax questions last year. After days of trying, I finally used Claimyr (claimyr.com) to get through to an agent. Their service connects you to unemployment phone agents without the wait. They have a video showing how it works: https://youtu.be/Rdqa1gKtxuE - saved me hours of frustration when I needed clarification on my 1099-G.

my sister got $12k in benefits and didnt get the tax break so i think 10,500 is the cutoff like others said. u should be fine but double check ur 1099-G when it comes

also make sure u keep ur address updated with nysdol so u get ur tax forms!! they dont forwrd that stuff and its a nightmare to get copies

To summarize for you and others with similar questions: 1. If your unemployment benefits were under $10,500 for 2025 (which yours are at $9,280), you qualify for the federal tax exemption. 2. This is NOT a payment or refund you receive now. It's an exemption when you file your 2025 taxes. 3. You still need to report all unemployment income on your tax return using information from Form 1099-G. 4. If unemployment was your only income and it's below the standard deduction amount (approximately $13,850 for single filers in 2025), you likely won't owe any federal income tax regardless. 5. New York State still taxes unemployment benefits, so you may still owe state taxes. 6. If you didn't have taxes withheld from your weekly payments, you might have a state tax bill when you file. Hope this clears things up for everyone!

Thank you all for the helpful responses! I understand now that this isn't a separate payment but rather an exemption when I file my taxes. I'll make sure to update my address with NYSDOL so I get my 1099-G and will double-check everything when I file. Really appreciate everyone taking the time to explain!