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Bottom line: unemployment is taxable income, you'll get a 1099-G showing how much you received, and you should either have taxes withheld or set money aside. Washington state has no income tax so it's just federal taxes you need to worry about.
One more thing to keep in mind - if you end up finding a new job before the end of the year, make sure to tell your new employer about the unemployment income when filling out your W-4. They might need to withhold extra taxes from your paychecks to cover what you'll owe on the UI benefits. I made this mistake once and ended up owing way more than expected because my new job's withholding didn't account for the unemployment income I'd received earlier in the year.
Been working part-time while on UI for 6 months now. The key is understanding that formula: WBA minus (gross wages minus $5). Once you get that, it's straightforward.
Thanks for asking this question! I was in a similar situation last year working part-time retail while collecting benefits. The earnings calculation can be confusing at first, but once you understand the formula (WBA minus gross wages minus $5), it becomes much clearer. I found it helpful to calculate my expected benefit amount before each weekly claim so there were no surprises. Just make sure you're reporting your exact hours worked and gross wages - don't try to estimate or round. The system is actually pretty fair about allowing part-time work while you search for full-time employment. Good luck with your job search!
Regarding your question about the pension - yes, definitely address both issues in your appeal hearing. Start by acknowledging the pension and explaining that you disclosed it from the beginning and understood it would reduce (not eliminate) your benefits. Then move on to the documentation issue as the main reason for the improper denial. Also, check if the denial letter specifies exactly which documents they claim are missing. Sometimes they'll list specific items, which helps you focus your appeal on those particular documents.
I'm going through something very similar right now! ESD denied my claim twice saying they never received my bank statements, even though I have confirmation emails showing successful uploads. What's really helped me is keeping a detailed log of every interaction - dates, times, representative names, and exactly what they told me. One thing that might help while you're waiting for your appeal: contact your local WorkSource office. They have staff who specialize in ESD issues and can sometimes escalate cases directly. The one near me actually called ESD on my behalf and got through to someone with more authority than the regular phone agents. Also, if you haven't already, try uploading your documents in PDF format instead of images. I read somewhere that their system processes PDFs more reliably. Worth a shot while you're preparing for the hearing! Hang in there - you're not alone in this mess. The system is definitely broken but people do eventually get through it.
Thank you so much for the WorkSource suggestion! I hadn't thought of that approach. I'll definitely contact my local office tomorrow. And yes, I've been keeping detailed notes of every interaction now - wish I'd started doing that from the beginning. The PDF tip is great too - I think most of my uploads were JPEGs. At this point I'm willing to try anything while waiting for the hearing. It's reassuring to know I'm not the only one dealing with this nightmare!
Final thought - if anyone runs into issues with their Washington ESD claim or has questions that need direct answers from an agent, don't forget about services like Claimyr that can help you get through their phone system. Sometimes talking to a real person is the only way to get definitive answers.
I went through something similar when I got laid off from my software engineering position making around $85K. I was so worried that Washington ESD would think I made "too much money" to qualify for benefits, but it turns out that's not how the system works at all. Your previous earnings actually help you get a higher weekly benefit amount, not disqualify you. The eligibility is based on having sufficient work history and earnings in your base period, plus meeting the ongoing requirements like job searching. Don't stress about your salary level - focus on filing your claims on time and documenting your job search activities properly.
Ellie Perry
This thread has been incredibly helpful! I had a similar experience about 6 months ago where ESD deposited $1,247 into my account with no explanation. I was too nervous to spend it and just left it sitting there, but after reading about your resolution, I'm realizing it might be legitimate interest from my 2021 overpayment appeal that I won. The timing makes sense too - they tried to collect about $3,800 from me, the appeal process took almost 8 months, and I won completely. I never thought to ask about interest payments when it was resolved. I'm definitely going to call them tomorrow and ask specifically about "post-appeal interest payments" like you mentioned. It's really frustrating that ESD doesn't proactively communicate these things clearly, but I'm grateful you shared your experience. Hopefully more people who are owed money will see this thread and know to follow up!
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Andre Moreau
•That's awesome that you kept the money safe instead of spending it! $1,247 sounds like it could definitely be interest from your appeal case. The fact that it was a larger overpayment amount and took 8 months to resolve would probably result in a decent interest payment. I hope you get answers when you call - it seems like there are quite a few people who went through similar situations and might be owed money they don't even know about. Thanks for sharing your story too, it's helpful to see that this isn't just a one-off situation!
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StarStrider
This is such an important thread for people to see! I had no idea that ESD was supposed to pay interest on money they incorrectly collected during overpayment disputes. I went through an overpayment appeal in 2019 that took over a year to resolve, and I won completely, but I never received any interest payment or was even told that was something I should expect. Reading through everyone's experiences here, it sounds like this is a widespread issue where ESD just hasn't been properly handling these interest payments. I'm definitely going to call them and ask about "post-appeal interest payments" for my case. For anyone else reading this who won an overpayment appeal in the past few years - it might be worth checking if you're owed interest too. Based on what people are sharing, it seems like ESD is finding these cases through their own audit process, but they're not being proactive about notifying people. Thanks to everyone who shared their experiences and especially to Ryan for following up with the resolution!
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Sydney Torres
•This is exactly why community forums like this are so valuable! It's incredible how many people are discovering they might be owed money that ESD never told them about. I'm a newcomer here but I've been following unemployment issues in Washington for a while, and this thread is eye-opening. It really seems like ESD has systemic communication problems - people shouldn't have to stumble across random deposits or community discussions to learn about money they're legally owed. I hope everyone who thinks they might be affected by this calls and asks about those post-appeal interest payments. It's great that Ryan shared the specific terminology to use ("post-appeal interest payments") since that seems to be the key to getting the right information from ESD representatives.
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