Can I file my 2024 taxes if I owe Washington ESD unemployment overpayment?

Thank you! So even though I have to pay back some of the unemployment money, I still report the full amount on my taxes?

Exactly. You report what you actually received in 2023. If you end up paying it back in 2025, that might be deductible on next year's return, but talk to a tax preparer about that.

That's a relief! I was worried they'd take my whole refund. How did you handle paying back the overpayment?

Washington ESD let me set up a payment plan. Took about 8 months to pay off but they were pretty reasonable about it.

I looked at the notice and I think they might be right, but how would I know for sure? The calculation seems complicated.

You can request a hearing to review the determination. They have to prove you weren't eligible for those benefits. Sometimes there are errors in their calculations or they misunderstood your work situation.

Never heard of that service. Does it actually work for Washington ESD calls?

Yeah, worked great for me. They handle the calling and waiting, then connect you when an agent picks up. Much better than sitting on hold for hours.

Might be worth trying. I've been trying to call them for weeks about setting up a payment plan.

Unemployment benefits are definitely taxable income. Washington ESD should have given you the option to have taxes withheld when you filed your weekly claims.

oh no... I never had taxes taken out. Am I going to owe a bunch of money?

Possibly, depends on your total income for the year. You should probably talk to a tax preparer or use tax software to see what you'll owe.

Are they charging interest on overpayments? The notice I got didn't mention interest.

They don't usually charge interest if you set up a payment plan promptly. But penalties can apply if you ignore the overpayment completely.

This is really helpful. So I just file normally and deal with the overpayment separately with Washington ESD?

Exactly. Two separate issues that don't really affect each other.

That's actually a good idea. Better than having monthly payments hanging over my head.

yeah I did that when I had an overpayment. Used my tax refund to pay most of it off at once.

Good point. I moved last year and need to update my address with Washington ESD anyway.

How much does something like that cost?

It's worth checking their site for current pricing. For me, getting through to resolve my overpayment issue quickly was worth it versus weeks of trying to call myself.

It's so stressful isn't it? At least we're not alone in dealing with this.

Definitely. The notice made it sound like my whole world was ending. Good to know it's more manageable than it seems.

Good advice. I'm definitely going to start a file with all this paperwork.

When you say 30 days, is that from when they mailed it or when I received it?

From the date on the notice itself, not when you received it. So check that date carefully.

Just checked - I still have about two weeks left if I decide to appeal. Thanks for the reminder about the deadline.

Tell me about it. Spent 3 hours on hold yesterday just to ask a simple question about my weekly claim.

That's exactly why I started using Claimyr. Life's too short to spend entire days on hold with Washington ESD.

You're right, Washington doesn't have state income tax so you only need to worry about federal taxes on your unemployment benefits.

Thanks! One less thing to worry about.

Glad we could help! Having a tax professional review everything is definitely the smart move.

Good call getting professional help. These situations can be tricky to navigate alone.

And remember, if you need to talk to Washington ESD about the overpayment, Claimyr is there if you get frustrated with the phone system.

That's encouraging. I'm going to review my case carefully before deciding whether to appeal.

Yeah definitely worth looking into. I got mine reduced from $3200 to $1800 after they realized they had the wrong dates for when I went back to work.

Absolutely. I'm going to get my taxes filed this week and then focus on the overpayment issue.

Smart approach. Getting organized and tackling things one at a time makes it much more manageable.

Thanks for sharing your experience. It's really helpful to hear from someone who's been through the whole process.

No problem. The anticipation and worry is usually worse than the actual reality of dealing with it.