How to change PA UC tax withholding settings after claim is active?
I started receiving my unemployment benefits last month but just realized taxes aren't being withheld from my payments. I'm worried about owing a huge amount when tax time comes around. Is there a way to update my claim now to have PA UC automatically take out taxes? I looked all over my dashboard but don't see any option to change this setting. Do I need to call them (ugh) or is there a form somewhere on the website that I'm missing? Has anyone successfully changed their tax withholding mid-claim?
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Hunter Brighton
ya i had this same problem last yr. you gotta call them to change tax withholding after the claim is already going. its not on the website anywhere i could find
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Grace Thomas
•Ugh that's what I was afraid of. Been trying to call for 2 days and can't get through. Busy signal every time.
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Dylan Baskin
Actually, you can change this online! Go to your dashboard, click on 'Claim Information', then select 'Update Payment Options'. There should be a checkbox for federal tax withholding (10%) that you can update. Make sure to click save after making the change. The system will apply the withholding starting with your next payment. Keep in mind this is only for federal taxes - PA doesn't withhold state income tax from UC benefits.
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Grace Thomas
•Thank you so much! I completely missed that section. Just found it and checked the box. Hopefully it updates before my next payment goes through.
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Lauren Wood
•This didn't work for me! I tried changing it online last week but my payment yesterday still came through with no taxes taken out. Called 27 times and couldn't get through. So frustrating!
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Ellie Lopez
The previous advice is good, but be aware that sometimes the online system has glitches with tax withholding changes. If you make the change and your next payment still doesn't have taxes withheld, you'll need to contact UC directly. I've helped several people with this issue and found that using Claimyr (claimyr.com) was the fastest way to actually reach someone. They have a service that helps you get through the phone lines and connect with a live agent without hours of redial. You can see how it works in their video demo: https://youtu.be/CEPETxZdo9E?si=WL1ZzVZWG3KiHrg2 The tax withholding is 10% federal only, and while it might seem small, it definitely helps avoid a surprise tax bill later!
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Grace Thomas
•Thanks for the tip! I'll try the online method first and if that doesn't work after my next payment, I'll check out that service. Really don't want to deal with a big tax bill next year.
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Chad Winthrope
•I tried updating mine online THREE TIMES and it never took effect! Finally called and the rep said there was a system issue affecting tax withholding changes. They had to manually update it on their end. So just be aware this might happen to you too.
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Paige Cantoni
IMPORTANT INFO EVERYONE SHOULD KNOW: Even if you don't get the withholding set up, you can make quarterly estimated tax payments to the IRS yourself! That's what I did for the first few months before I got my withholding fixed. Saves you from owing a huge lump sum at tax time. Just google "IRS estimated tax payments" and you can pay online.
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Kylo Ren
•Good advice but WHO has extra money while on unemployment to make tax payments?? I'm barely covering rent with these payments as it is.
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Paige Cantoni
•Fair point! That's why getting the withholding set up is definitely the easier option if you can make it happen.
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Lauren Wood
does anyone know if the 10% they take out is enough? i had it set up from the beginning but im worried its still not going to cover what i owe next year
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Dylan Baskin
•The 10% withholding is fixed by the system - you can't change the percentage. For most people, it's close to what you'll owe, but it depends on your total annual income and other factors. If you're concerned, you might want to consult with a tax professional about your specific situation.
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Grace Thomas
UPDATE: I followed the advice to go through the Claim Information section and found the checkbox! It was actually under 'Financial Determination' and then 'Payment Options' on my screen (the UI must have changed recently). Just wanted to update in case anyone else is looking for it. Fingers crossed it takes effect with my next payment!
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Hunter Brighton
•thx for posting where u found it! they move stuff around on that site all the time its so annoying
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Ellie Lopez
•Great that you found it! One suggestion - take a screenshot of your confirmation page showing the change request was submitted. I've had claimants tell me that having documentation of when they requested the change was helpful when there were issues later.
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GamerGirl99
•Smart tip about the screenshot! I just went back and grabbed one showing my change was submitted. Really hoping this works because I calculated roughly what I might owe and it's going to be a lot without any withholding. Has anyone had success with the system actually processing the change once you find the right section?
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Michael Adams
•Yes! I made the change about 6 weeks ago through that same section and it worked perfectly. My next payment after the change had the 10% federal tax withheld. Just make sure you don't see any error messages when you submit the change. If the system accepts it, you should get a confirmation screen. The change usually takes effect with the very next payment cycle, so you should know pretty quickly if it worked!
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