Will NY unemployment refund taxes that were withheld from my benefits?

From what I understand, they passed something that made the first $10,200 of unemployment non taxable for 2020 only. That was a one-time thing because of covid. For 2021 and 2022 everything is fully taxable again. You won't be getting that money back unless you overpaid somehow when you file your taxes.

After spending 3 weeks trying to get though to someone at ny unemployment about this exact issue, I tried this service called Claimyr (claimyr.com) and they got me a callback from a real agent within an hour. Talking to the agent got my question answered immediately and saved me so much stress! The agent confirmed taxes are still being withheld and won't be returned automatically. Here's a video explaining how it works: https://youtu.be/Rdqa1gKtxuE

No tax refunds for withheld unemployment taxes right now. I just filed my return in February and had to pay taxes on all my benefits from 2022. Had to fork over almost $2000 😭

Unfortunately you won't get those taxes back. I've been doing my research and the tax-free unemployment thing was only for 2020 during the height of the pandemic. But here's a tip: you can change your withholding going forward if you want to get more money now. Just go to ur payment options in ur account and uncheck the withholding box. Just remember you'll owe it all next April!

I've been dealing with NY unemployment for the past 10 months and have become an expert in this mess unfortunately 😂 Here's what you need to know about taxes and unemployment in NY right now: 1) The tax exemption for unemployment benefits was ONLY for 2020 tax year (up to $10,200) 2) All unemployment income for 2021, 2022, and current 2023 is FULLY taxable at both federal and state levels 3) If you chose to have taxes withheld, they take 10% for federal and nothing for state - which means you might still owe state taxes when you file 4) You can change your tax withholding preference on the NY unemployment website under payment options 5) If you're having ANY issues with your claim that you can't resolve online, save yourself the headache and use claimyr.com - it was the only way I could actually speak to a human being after trying for weeks The whole system is ridiculous, but at least knowing how it works can help you plan ahead. Hope this helps!

bruh the ny unemployment system is a joke. been on hold 49 times trying to ask this exact question. taxes are still being deducted and you wont get that money back unless you're due a refund when you file next year.

I actually filed my taxes last month and had to pay on all my unemployment from last year. They only did that tax-free thing for 2020 when the pandemic first hit. Everything since then is taxable income. If you've been having taxes withheld this whole time, that might actually be better so you don't get hit with a big bill next April.

Just checked with my tax guy yesterday about this! The exclusion for unemployment benefits expired. Going forward, all unemployment is taxable like regular income. Sorry to be the bearer of bad news 😕

That 10.2k exemption was only for 2020. I just did my taxes and had to pay on every penny of unemployment I got in 2022. TYPICAL that they took away the tax break just when inflation got worse and everything costs more than ever 🙄

Omg I literally just dealt with this EXACT issue with NY unemployment! So there's no automatic refund of your withheld taxes. But here's what I did: 1) Changed my withholding to stop taking out taxes for future payments 2) Used claimyr.com to get through to an agent (after 3 weeks of failed calling) 3) Asked if there was any way to get back previously withheld amounts The agent told me I'd have to claim it on my tax return next year - can't get it back now. But stopping future withholding helped my weekly amount. The unemployment system is AWFUL but talking to an actual human made all the difference.

The tax exemption people are talking about was part of the American Rescue Plan Act, but it only applied to unemployment compensation received in 2020 (up to $10,200). For 2021, 2022, and 2023, unemployment benefits are fully taxable again.

I WISH we were getting those taxes back. I've had taxes taken out since I started my claim back in October and could really use that money right now. But from everything I've read, withholdings aren't coming back anytime soon - at least not until you file your yearly taxes. And even then, only if you're owed a refund.

Any updates on this? I'm in the exact same situation and wondering if i should change my withholding for future payments at least

Not sure if this helps but I was in a similar situation... had taxes taken out and then heard something about a tax break. Turns out the tax break was only for 2020 unemployment during COVID times. For 2021-2023, unemployment is fully taxable again. You're probably better off having kept the withholding on so you don't owe a bunch when tax season comes around.