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Just want to emphasize one more time - unemployment benefits are 100% taxable as ordinary income. Don't make the mistake of thinking they're tax-free just because you're out of work!
I work as a tax preparer and see this confusion every year during tax season. The 10% withholding is often not enough for people in higher tax brackets or those with other income sources. I usually recommend clients calculate their effective tax rate from the previous year and consider having additional amounts withheld if they think 10% won't cover it. Also worth noting - if you receive unemployment early in the year but then get a job, your total income for the year might push you into a higher bracket than expected, so that 10% withholding from your unemployment period may fall short.
For future reference for anyone reading this: If you ever receive an overpayment notice but believe you're still eligible for benefits, you should CONTINUE to file your weekly claims while simultaneously addressing the overpayment issue (either through appeal or waiver request). This preserves your rights to those benefits if the overpayment is resolved in your favor. If you stop filing weekly claims, you essentially forfeit those weeks regardless of how the overpayment situation is ultimately resolved. Always file on time, every week, until explicitly told you're ineligible by ESD.
I'm new to this community but wanted to share something that might help. I went through a similar situation last year where I had an overpayment issue and got scared to keep filing claims. My case worker at the local WorkSource office told me that even if you have pending issues with ESD, you should always keep filing your weekly claims to preserve your right to benefits. She said the worst that happens is they hold the payments until the issue is resolved, but if you don't file at all, you lose those weeks forever. I know it's probably too late for your situation, but for anyone else reading this - don't stop filing weekly claims just because of an overpayment notice! The filing deadlines and overpayment issues are handled separately. I learned this the hard way too, though thankfully I only missed a few weeks before getting this advice.
my neighbor said something about a "claim extension" when you use up your regular UI? is that still a thing in 2025?
Your neighbor is likely referring to Extended Benefits (EB) or other extension programs that have existed in the past. As of 2025, there are no automatic extensions to regular UI. Extensions typically only become available during periods of high unemployment, like during the recession or pandemic, and require specific authorization from Congress or state governments. Currently, only the standard 26 weeks are available in Washington state.
Just wanted to add my experience here - I had a similar situation last year where I had 6 weeks denied due to earnings from a contract job. What really helped me was keeping detailed records of all my weekly certifications and the reasons for any denials. When I eventually got through to ESD, the representative was able to walk me through exactly how many benefit weeks I had remaining and when my benefit year would end. One tip: you can actually see this information in your eServices account under "Payment History" - it shows your total benefit amount, how much you've used, and your benefit year end date. Saves you from having to call if you just need to check your remaining balance. The math gets confusing but the online account breaks it down pretty clearly once you know where to look.
For anyone still confused, I found the Washington ESD handbook really helpful once I finally found it buried on their website. It has examples of different scenarios with the earnings calculations.
I'll try to find it again. It was in the claimant handbook section, but their website navigation is terrible.
This is another reason I liked using Claimyr - the agent could explain specific scenarios without me having to hunt through their website for hours.
This thread has been super helpful! I'm in a similar situation and was panicking about the hours vs earnings thing. One quick question though - if I'm working variable hours week to week (like sometimes 15 hours, sometimes 35 hours), do I need to notify ESD about the schedule changes or just report my actual earnings each week? I keep seeing conflicting info about whether you need to report "significant changes" in work status.
You don't need to separately notify ESD about schedule changes - just report your actual earnings each week when you file your claim. The system is designed to handle variable income situations like yours. As long as you're accurately reporting what you earned each week, that's all they need. The "significant changes" thing usually refers to major changes like starting a new permanent job or becoming unavailable for work, not normal fluctuations in part-time hours.
Angelica Smith
Glad to hear it came through! Yes, Sunday filing is definitely the way to go. It gives the system maximum processing time before the weekend hits again.
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Dylan Mitchell
Really glad your payment came through! For anyone else dealing with this in the future, I've found that the ESD mobile app actually shows payment processing status pretty clearly - you can see when it moves from "processed" to "paid" which helps with the anxiety of waiting. Also, if you're ever really stuck and need to talk to someone at ESD, calling right when they open (usually 8am) gives you the best chance of getting through without being on hold forever.
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