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Does anyone know if this backpay means you have to report it on your FAFSA too? My kid is in college and I'm worried this will mess up her financial aid if I suddenly have $5000 more income when we fill out the FAFSA in October...
Yes, unemployment compensation is considered income for FAFSA purposes. Since this payment was received in 2025, it would potentially impact the FAFSA for the 2026-2027 academic year (depending on which tax year they're using - the FAFSA rules have been changing). You might want to speak with your college's financial aid office about your specific situation and whether you can request a professional judgment review if this one-time payment significantly affects your aid eligibility.
I remember being so confused about this too! Everyone's right that it goes on the year you received it. But make sure you're setting enough aside for taxes. When I got backpay, I assumed the 10% withholding would cover it, but unemployment doesn't withhold for state taxes if your state has income tax. And yeah, it pushed me into a higher federal bracket too. Better to save too much than too little!
I'm in Washington so at least I don't have state income tax to worry about! Small blessing there. Thanks for the warning though - I'll definitely put aside more than I think I need just to be safe.
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wait im confused... if u were laid off from the first school and then worked at a second school and then got laid off again, shouldn't your unemployment claim have been updated? like the second school would be the one responsible for ur benefits after u worked there right? something seems off with how esd calculated this. did they think u were still claiming benefits while working at the second school maybe?
You picked up on something important! That's exactly what I've been trying to explain to ESD. Most of my benefits came after being laid off from the second school, but they're treating it like one continuous claim from the first school. The first school is challenging the whole thing even though they shouldn't be responsible for benefits after I started the second job. The math makes no sense! I think this is part of the confusion in my case.
After reading all the details you've shared, I think there's a critical technical issue that might help your case. It sounds like there's been a failure to properly segment your claim periods between employers. Each period of unemployment should be treated as a separate claim event with different base year employers. If most of your benefits came after being laid off from the second school, then the first school should have no standing to contest those benefits. I'd recommend specifically requesting a "segregation of claim periods" review when you contact ESD or the Unemployment Law Project. This is a technical distinction that sometimes gets overlooked in complicated multi-employer cases. Also, if you have any pay stubs or hire/termination documentation from the second school, make sure those are front and center in your appeal. The dates of employment at the second school are crucial to establishing that the first school's testimony should only apply to a small portion of your total benefits, if any.
This is incredibly helpful information! I've never heard of a "segregation of claim periods" review but it sounds exactly like what I need. I do have all my documentation from both schools including exact start/end dates. I'll make sure to specifically mention this when I speak with ULP. Thank you so much for this insight!
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my cousin said if u make even $1 over ur weekly benefit they take EVERYTHING away for that week... is that true?? seems so unfair if you just barely go over
Yes, unfortunately that's how it works. If you earn even slightly more than your weekly benefit amount, you won't receive benefits for that week. It's definitely a cliff-edge rather than a gradual reduction, which can feel unfair. This is why some people carefully manage their hours if they're doing part-time work - but never misreport! ESD will eventually catch any discrepancies and you'll owe it all back plus penalties.
Just don't forget to answer "YES" to the question about whether you're able and available for work during the weeks you're on this temporary job. I made that mistake once because I thought "well I'm already working so I'm not available" - but that's not what they mean. As long as you WOULD be available for a permanent full-time job if offered (even if it means quitting the temp job), you should answer yes. If you answer no, they'll deny your benefits AND it can complicate things when your temp job ends.
Oh wow, I wouldn't have thought about that! Thanks for the heads up. I'll definitely answer yes to being available since I would take a permanent position if offered one.
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One more thing to remember is that if there are any holidays (even ones you wouldn't think about like Presidents' Day), that can add an extra day to processing. Also, if you file later in the day on Sunday versus early morning, sometimes that can push you into the next processing batch. The ESD dashboard should update to show the payment amount and status before it actually hits your bank account, so that's a good way to know it's on the way.
This is actually not true all the time! My dashboard showed "paid" for THREE DAYS before the money actually showed up. ESD told me it was "in transit" whatever that means. Their system is from like 1995 lol
wait, did u make sure to do your job search requirements during your waiting week too? if not, they might deny ur first payable week. happened to my brother
Oh! Yes I did my 3 job search activities during the waiting week and logged them when I filed. Thanks for the reminder though - that would've been a disaster if I missed that.
QuantumQuasar
Just to clarify some of the information in this thread: 1. The current ID verification timeframe is averaging 2-4 weeks (not 6-9 weeks like last year) 2. Standby status approval requires employer verification and is good for up to 8 weeks for most industries, but construction/building trades can get up to 12 weeks 3. Sheet metal workers fall under the construction category, so your husband should qualify for the 12-week standby period 4. Make sure he files his initial claim within 7 days of being laid off 5. He should file weekly claims even while waiting for approval 6. The new SecureID+ option is significantly faster if he's eligible (WA state ID required) 7. Having his union representative contact ESD can sometimes help expedite the process Hope this helps!
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Miguel Castro
•This is really comprehensive - thank you! I didn't realize that construction trades get longer standby periods. That's good to know. He's already filed his initial claim and we'll make sure he keeps doing the weekly claims while waiting for approval. I appreciate your help!
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Connor Byrne
one more thing - tell him to check his spam folder everyday!! my wifes approval notice went straight to spam and she almost missed the deadline to respond to something
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Miguel Castro
•Great tip, thank you! I'll have him add ESD to his safe senders list too.
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