Are you taxed on unemployment benefits in Washington - need help understanding tax implications

Oh no, so I need to pay taxes on all $5,200 I've received so far? That's going to be a lot of money I don't have.

You can have 10% withheld automatically when you file your weekly claims. Look for the tax withholding option in your claim.

How do I set up the withholding? Is it in the weekly claim system?

Yes, when you file your weekly claim there should be a question about federal tax withholding. You can change it anytime.

I couldn't find this option anywhere in my weekly claim form. Maybe it's only available for new claims?

How much does that cost? I'm already tight on money with unemployment.

It's worth checking out their site for current info. For me it was worth it to actually talk to someone instead of getting hung up on constantly.

I used Claimyr too when I had issues with my adjudication. Worked great and got me connected to an agent same day.

20-25%?? That seems like a lot more than the 10% withholding option.

The 10% withholding might not cover everything depending on your tax bracket and other income. Better to save extra than owe money you don't have.

Yes, all unemployment income is taxable. You should have received a 1099-G form showing the total amount.

crap i think i threw that away thinking it was junk mail

You can get a copy of your 1099-G from the Washington ESD website or by calling them.

That's exactly why I mentioned Claimyr earlier - they solve that exact problem of not being able to reach Washington ESD by phone.

I'm skeptical of paying for something like that but I'm also desperate to talk to someone.

Try calling right at 8am when they open. Sometimes you can get through first thing in the morning.

That's a relief at least. So just federal taxes then.

Correct. One less thing to worry about compared to other states.

Yikes that's a lot of money. I definitely need to figure out the withholding thing.

yeah it was brutal. had to do a payment plan with the IRS

Perfect, I'll look for that when I file my claim this week. Thanks for the clear instructions.

Is there a way to withhold more than 10% if you want to be extra safe?

The system only offers 10% withholding. If you want more, you'd need to set aside additional money yourself.

Good to know. I'll watch for that in the mail.

can you get it electronically or just mail?

You can access it online through your Washington ESD account usually.

Totally agree. This should be clearly explained when you first sign up.

They do mention it but it's buried in all the other information. Easy to miss.

Ok I'm convinced. Going to check out their website today.

The video demo really helps explain how it works. Much less sketchy than I initially thought.

I didn't think about that. I did work part of the year before getting laid off.

yeah definitely consider your total income for the year, not just the unemployment portion

Good to know there are options if I do end up owing money.

Can confirm - I'm on a payment plan now and it's manageable.

I'm going to do this right away. Thanks everyone for all the helpful info!

Smart move. Better to get less money now than owe a bunch later.

Perfect summary. I feel much more informed now about what I need to do.

This thread should be pinned - so many people don't realize unemployment is taxable.