Are taxes taken out of unemployment benefits in Washington ESD?

Thanks! Do I need to do anything for state taxes too or just federal?

Washington doesn't have state income tax so you only need to worry about federal withholding.

Ouch, that's rough. How much were you getting weekly if you don't mind me asking?

was getting around $550/week for about 6 months, so yeah... do the math on that tax bill

Is there a minimum you have to withhold or can you do less than 10%?

It's a flat 10% for federal withholding through Washington ESD. You can't customize the percentage - it's either 10% or nothing.

I had the same problem until I found Claimyr (claimyr.com). They help you get through to Washington ESD agents without the crazy wait times. There's even a demo video that shows how it works: https://youtu.be/7DieNd3C7zQ. Saved me so much frustration!

Interesting, never heard of that service. Does it actually work or is it just another scam?

It's legit - they basically handle the calling and waiting for you, then connect you when an agent is available. Way better than sitting on hold for 3+ hours just to get hung up on.

Did you have any other income that year or was it just unemployment?

Just unemployment for about 8 months. Got a new job in September but the damage was already done tax-wise.

Depends on your total income and tax bracket. The 10% is a flat rate that might not match your actual tax rate. You might still owe or get a refund depending on your situation.

Exactly - the 10% is just an estimate. If you're in a higher tax bracket or have other income, you might still owe. But it's better than owing on the full amount.

Because unemployment benefits are administered differently than regular payroll. Each state handles it differently - some do withhold automatically, others don't.

It's because unemployment isn't technically 'wages' even though it's taxable income. Different rules apply.

Good choice! You'll thank yourself next tax season.

Where exactly in the account did you find it? I'm looking but don't see it anywhere.

Log in to your account, go to 'Unemployment Services' then 'Manage My Claim' and look for 'Federal Tax Withholding' option.

When do they usually send out the 1099-G forms?

Should be mailed by end of January, but you can usually access it online through your Washington ESD account earlier than that.

Definitely worth trying if you need to speak with someone directly. The regular phone system there is basically broken with how overloaded it is.

What kind of specific tax situation do you have? Maybe someone here can help.

I had some self-employment income while on unemployment and want to make sure I'm handling the withholding correctly for my total tax liability.

That's probably what I need to do. Thanks for the suggestion.

Yeah the 10% flat rate isn't always enough, especially if you have other income streams.

Better late than never! At least you're thinking about it now instead of getting surprised next April.

True, but I've already received like 12 weeks of benefits with no withholding. Going to be a big hit.

It's taken off the top of your calculated benefit amount. So if your weekly benefit is $400, you'd receive $360 with 10% federal withholding elected.

Got it, so it doesn't change your actual benefit rate, just what you receive each week.

That's smart if you have the discipline to not touch that money. I definitely didn't...

Yeah it requires some self-control but I liked having the flexibility of the full payment each week.

Only going forward from when you elect it. It doesn't retroactively withhold from previous payments.

That's what I figured but wanted to confirm. Thanks!

right?? like we're already stressed about being unemployed and now we have to worry about taxes too

It's definitely an extra burden during an already difficult time, but better to deal with it upfront than get hit with a big bill later.

That's exactly my thinking too. Peace of mind is worth the smaller weekly payments.

Same here. Already dealing with reduced income, don't need tax surprises on top of it.

The Washington ESD website can be pretty buggy. If you can't get through online, that's another situation where calling through Claimyr might help - they can walk you through it or handle it over the phone.

Good point, might be worth trying that route if the website keeps giving me problems.

Also try clearing your browser cache and cookies, or try a different browser. The SAW portal can be finicky sometimes.

Perfect summary! This should be the first thing they tell you when you file a claim.

Absolutely. Would have saved me a lot of stress and money if I'd known this upfront.

The official info is there but it's buried and not well explained. Forums like this are so much more helpful.

Agreed - real experiences from people who've been through it are way more valuable than the official documentation.