Can you file taxes on Washington ESD unemployment benefits - need help with tax forms

I think I got that form but threw it away thinking it was junk mail. Can I get another copy from Washington ESD?

You can download a copy of your 1099-G from your SecureAccess Washington account. Log in and look for tax documents under your UI claim information.

You can actually have taxes withheld from your weekly unemployment payments if you request it. It's optional but helps avoid owing money at tax time.

wish i knew that earlier... too late now i guess

Really? That actually worked for you? I've been trying to call Washington ESD for weeks about my 1099-G.

Yeah, it was super easy. I got connected to someone within like 10 minutes and they sent my 1099-G to my email the same day.

Never heard of that service but anything is better than sitting on hold for hours just to get hung up on.

Wait, can you get EITC with just unemployment income? I thought you needed earned income from a job.

The rules changed recently. Unemployment compensation can count as earned income for EITC purposes in certain situations. Definitely worth looking into.

I understand the frustration, but unemployment benefits have always been considered taxable income by the IRS. It's treated the same as wages from an employer.

Still think its wrong to tax people who are already struggling financially

Yes, you'll report that $12,800 as unemployment compensation on your tax return. Most tax software will have a specific section for unemployment income where you enter the 1099-G information.

Thanks! Using TurboTax so hopefully it walks me through it step by step.

what kind of job search stuff can you deduct?

Things like resume printing, job fair travel, interview clothing. But check with a tax professional since the rules can be complicated.

That was only for 2020 tax returns. For 2024 and going forward, all unemployment benefits are fully taxable again.

Figured as much but worth asking. That exemption saved me a lot of money that year.

How do you double-count it? I want to make sure I don't do that.

I accidentally included my UI benefits in both the unemployment section AND the other income section. Only put it in one place - the unemployment compensation line.

Exactly! The government forces you to pay into the system through payroll taxes then taxes you again when you need to use it.

The payroll taxes fund the unemployment insurance program, but the benefits you receive are still considered income by the IRS. It's similar to how 401k distributions are taxed even though you contributed to them.

I might have to try that. Been calling ESD for 3 days straight with no luck.

Is there a cost for using that service?

Yeah there's a fee but honestly worth it considering how impossible it is to reach ESD otherwise. Check out their demo video to see if it's right for you.

I don't think I had any taxes withheld. Is that why I'm going to owe money now?

Possibly. If no taxes were withheld and you don't have other withholding or estimated tax payments, you might owe when you file. Consider making estimated payments next time if you're on UI for an extended period.

State disability benefits generally aren't taxable at the federal level, but regular unemployment benefits are. You should receive separate forms for each type of benefit.

That's what I thought but wanted to double check. Thanks for confirming!

Glad you got it sorted out! It's always stressful the first time you have to deal with unemployment on your taxes.

jealous... still working on mine and dreading how much im gonna owe

Hang in there! It's not as complicated as it seems once you get started.