Will NY unemployment refund taxes withheld after tax waiver period ended?
I'm confused about the tax situation with my NY unemployment benefits. During that tax-free period last year, I never went back to change my withholding settings, so they've been taking taxes out of my payments this whole time. Does anyone know if we're getting those taxes refunded now? I heard something about another round of tax exemptions but can't find clear info on the NYSDOL site. Should I have changed my settings or will they automatically refund the withheld taxes? Been getting benefits since November 2024 if that matters.
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Oliver Alexander
uh the tax free period ended already. if u kept having taxes taken out after it ended thats on you. u dont get that money back unless theres a new law passed
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Kaylee Cook
•Thanks for responding. So there's definitely no new tax waiver happening? I thought I heard something about it on the news last week.
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Lara Woods
The tax exemption on NY unemployment benefits was only for a specific period (January through August 2024). Any taxes withheld after that period are legitimate federal withholdings that you'll reconcile when you file your taxes for 2024 and 2025. If you overpaid, you'll get a refund when you file your taxes, but there's no automatic refund of withholdings from NYSDOL. If you want to change your withholding status now, log into your NY.gov account, go to your unemployment dashboard, and select "Tax Withholding Options" to update your preference.
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Adrian Hughes
•this is correct! also keep in mind that even if you didnt have taxes taken out you still might owe when you file depending on your total income for the year. i learned that lesson the hard way!!
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Kaylee Cook
•Thank you for the clear explanation! I'll go update my withholding preferences now. Do you know if changing it now will affect the payments I've already received, or just future ones?
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Molly Chambers
I WENT THROUGH THIS LAST YEAR!! They are NOT going to automatically refund anything - the government never gives money back without you jumping through hoops! You'll have to wait until you file your taxes to get any of those withholdings back. And honestly, it might be better to keep the withholding on anyway because unemployment benefits ARE taxable income (except during that special exemption period) and you don't want to end up owing a bunch next April!!!
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Ian Armstrong
•This is correct. Any federal taxes withheld outside the exemption period will be reconciled when you file your tax return. However, I would like to clarify that changing your withholding setting is quite simple and not really "jumping through hoops" - it's a straightforward option in your online account settings.
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Eli Butler
Let me share what worked for me when I needed to sort out my tax withholding confusion. I tried for DAYS to reach someone at NYSDOL with no luck - always disconnected or on hold forever. Then I tried Claimyr (claimyr.com) which got me connected to an actual agent in about 20 minutes! They explained exactly which tax exemptions applied to my specific claim period. They have a video showing how it works here: https://youtu.be/Rdqa1gKtxuE The agent confirmed there's no new tax exemption period currently, and any taxes withheld after the exemption period ended won't be automatically refunded. But at least I got a definitive answer instead of stressing about it.
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Kaylee Cook
•Thanks for the suggestion. I've been trying to call them for days with no luck. I'll check out that service if I can't get through soon. Did they charge a lot for it?
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Eli Butler
•It's worth it just to actually talk to someone who can help. They don't charge based on how long you talk to the agent, just to make the connection. I spent almost 30 minutes getting all my questions answered about the tax stuff AND a separate issue with my claim. Better than wasting hours trying to call yourself!
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Marcus Patterson
I'm also confused about the taxes thing! I thought I heard something about a new round of tax exemptions too. Maybe we're mixing it up with that bill that was proposed but didn't pass? Something about extending the tax break for 2025? My cousin works for an accounting firm and she mentioned something about it but wasn't sure if it went through or not.
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Ian Armstrong
•You're likely referring to the proposed extension of unemployment tax relief that was discussed in early 2025, but it did not pass. Currently, there is no active legislation exempting unemployment benefits from federal taxation outside the original exemption period. Always verify tax information through official sources like the IRS website or NYSDOL announcements rather than relying on news snippets or word-of-mouth.
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Adrian Hughes
honestly most people i know just keep the withholding on anyway! saves u from owing a bunch at tax time. my bf had withholding off last year and ended up with a $1200 tax bill he wasnt expecting!!
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Kaylee Cook
•Ouch, that's exactly what I'm trying to avoid! I think I'll keep the withholding on then. Better to get a small refund than owe money I haven't budgeted for.
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Lara Woods
To directly answer your original question: No, there is currently no plan to refund taxes that were withheld after the exemption period ended. Those withholdings are proper federal tax payments. To clarify the timeline: 1. January-August 2024: Unemployment benefits had a special tax exemption 2. September 2024-present: Normal taxation rules apply (benefits are taxable) Changing your withholding settings now will only affect future payments. For any overpayment of taxes already withheld, you'll need to file your tax return to receive a refund.
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Kaylee Cook
•Thank you for the detailed timeline! This clears up my confusion. I'll leave my withholding as is since it sounds like it might be better for me in the long run.
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Lydia Bailey
I had a similar question last month when I was talking to my tax guy about my 2024 returns. He said the tax exemption was super specific about which months were covered and there's definitely no automatic refund coming. He actually recommended keeping withholding ON for unemployment because the amount they take out is pretty small compared to what you might owe if you have other income too. When I did my taxes, I actually got some back because I had other deductions that offset it.
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Oliver Alexander
wait r u talking about state taxes or federal taxes? cause thats totally different things
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Ian Armstrong
•Good question for clarification. The exemption period applied to federal taxes only. New York State has its own tax treatment of unemployment benefits, which may differ. Always consult with a tax professional about your specific situation, especially if you have questions about state-specific tax treatments.
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