Can you file taxes with unemployment benefits from Washington ESD?

I haven't received the 1099-G yet. When do they usually send those out?

Washington ESD typically mails 1099-G forms by the end of January. You can also access it online through your SecureAccess Washington account.

You're not alone - lots of people don't realize unemployment is taxable. The good news is you can usually set up a payment plan with the IRS if you owe more than you can pay at once.

That's somewhat reassuring. I should have been smarter about this from the beginning.

I wish I had known this earlier. Can I still request tax withholding if I'm still collecting benefits?

Yes, you can change your withholding preference in your Washington ESD account settings. It will apply to future payments.

This is really helpful info. I just started collecting UI and was wondering about taxes.

Washington doesn't tax unemployment benefits since there's no state income tax. But if you lived in another state part of the year, you might need to file there depending on their residency rules.

Got it, thanks. I moved from Oregon in July so I'll need to check their requirements.

I had the same problem! I actually found this service called Claimyr (claimyr.com) that helps you get through to Washington ESD agents. They have this video demo (https://youtu.be/7DieNd3C7zQ) that shows how it works. Basically they handle the calling hassle for you and connect you when an agent is available.

That sounds too good to be true. Does it actually work?

Yeah it worked for me. I was trying to resolve an issue with my benefit year ending and couldn't get through for weeks. Used Claimyr and got connected to an agent the same day.

Good point. I was reading some older posts online and was getting confused about the rules.

Yeah those pandemic rules are long gone. Now it's back to regular taxation for all unemployment benefits.

Job search expenses are generally not deductible for most people anymore after the 2017 tax law changes. There might be very specific situations where they qualify, but you'd need to talk to a tax professional.

Bummer. I've spent quite a bit on job hunting while on unemployment.

All unemployment benefits are taxable regardless of whether you were on standby or regular UI. Your 1099-G from Washington ESD will show the total amount for tax purposes.

Thanks, that makes it simpler than I thought.

Which tax software do you recommend for unemployment situations?

I've had good luck with TurboTax and FreeTaxUSA. Both handle unemployment income properly and walk you through it step by step.

Your neighbor might be thinking of the special 2020 tax year rule where the first $10,200 of unemployment was tax-free. That was a one-time pandemic relief measure and doesn't apply to benefits received in 2024.

Ah that explains it. She was probably talking about her 2020 taxes.

Yeah I got confused about that too when I first started collecting benefits.

How did you manage to get through? I've been trying for days and keep getting the busy signal.

I used that Claimyr service someone mentioned earlier. Saved me so much frustration compared to calling directly.

I might need to try that. This whole situation is stressing me out.

This is helpful context. I was worried it might be taxed at a higher rate.

Nope, just regular income. The tricky part is if you didn't have taxes withheld, you might owe more than usual at filing time.

I worked part of the year before getting laid off, so I'll definitely need to calculate everything together.

Yeah, that's exactly the kind of situation where you want to make sure you're handling it correctly.

I didn't even think about this. I moved from Seattle to Spokane - does that matter since it's within Washington?

No, moving within Washington won't affect your taxes since there's no state income tax here. I was thinking more about people who moved between states.

That's a good idea. I'd rather pay something now than get hit with a huge bill in April.

Exactly. Even paying part of what you think you'll owe can help avoid penalties and make filing season less stressful.

I did this last year and it definitely made tax time easier to handle.