Do TWC unemployment benefits count as taxable income? Tax filing questions

Yes, unemployment benefits are definitely taxable income at the federal level. TWC will send you a Form 1099-G (usually by January 31st) showing the total benefits you received and any federal income tax withheld. You'll need to report this on your federal tax return. When you initially filed your claim, you should have been asked if you wanted taxes withheld from your payments. If you selected yes, they should have withheld 10% for federal taxes. If you didn't choose to have taxes withheld, you'll likely owe those taxes when you file.

i got hit with a HUGE tax bill last year cuz i didnt have them withhold anything... like $1400 i wasnt expecting!! make sure u check ur payment stubs on the twc website, it shows if they took out taxes or not

To add to what others have said, you can log into your TWC account and look at your payment history. Each payment breakdown will show if taxes were withheld. Look for a line that says "Federal Income Tax" with an amount next to it. If you find they haven't been withholding taxes, you still have options. You can make estimated tax payments to the IRS before filing season or adjust your withholding at your current job if you're employed again. Also, don't forget that unemployment is only taxable at the federal level in Texas - our state doesn't have income tax, so at least you don't have to worry about that part!

I had such a NIGHTMARE dealing with this last year. TWC never sent my 1099-G form and when I tried calling to get a replacement I could never get through!!! Spent WEEKS trying to reach someone. My tax preparer ended up having to estimate the amount and I had to file an amended return later. The TWC phone system is ABSOLUTELY USELESS!!!

If ur worried about owing, you might qualify for Earned Income Credit if ur income was low enough overall. That helped offset my unemployment taxes last year.

When I couldn't get my 1099-G last year and needed to reach TWC urgently for tax filing, I found this service called Claimyr that got me through to a TWC agent in about 20 minutes instead of spending days redialing. Their system basically keeps calling TWC for you until they get through, then connects you. Saved me so much frustration! They have a demo video at https://youtu.be/V-IMvH88P1U?si=kNxmh025COIlIzKh and the website is claimyr.com if you need to talk to someone about your tax withholding situation.

Also be prepared that if you DIDN'T have taxes withheld, you might get hit with an underpayment penalty from the IRS!!! They expect you to make quarterly estimated tax payments on unemployment if you don't have withholding. Nobody ever tells you this until it's too late!

Update: I checked my payment history and thankfully I DID elect to have taxes withheld! Each payment shows a 10% federal tax withholding. That's a huge relief. I'll still keep an eye out for my 1099-G in January. Thanks everyone for the help and advice!

my brother forgot to put his unemployment on his taxes last year and got a letter from the irs about it... they automatically get the info from twc so dont forget to include it or theyll come after u

oh another thing nobody mentined... if u had any overpayments that u paid back to twc make sure thats reflected on ur 1099!! sometimes they mess that up and u end up paying taxes on money u had to return