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Lourdes Fox

Can you get Washington ESD unemployment if you owe taxes - claim approved or denied?

I just got laid off from my warehouse job last week and need to file for unemployment benefits through Washington ESD. The problem is I owe about $2,800 in back taxes to the IRS from 2022 and 2023. I'm worried this might disqualify me from getting UI benefits or cause problems with my claim. Has anyone been in this situation? Will Washington ESD deny my unemployment claim because I owe federal taxes? I really need these benefits to pay rent while I'm job searching.

Bruno Simmons

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Your tax debt won't prevent you from getting Washington ESD unemployment benefits. UI eligibility is based on your work history, earnings, and reason for separation - not your tax status. I owed taxes when I filed my claim last year and it didn't affect my benefits at all.

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Lourdes Fox

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That's such a relief to hear! I was panicking that they'd automatically deny my claim. Did you have any issues when you were filing your weekly claims?

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Bruno Simmons

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Nope, no issues with weekly claims either. Just make sure you report any work and earnings accurately each week.

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Washington ESD and the IRS are completely separate systems. Your unemployment eligibility is determined by whether you worked enough quarters, earned enough wages, and were separated through no fault of your own. Tax debt doesn't factor into their decision at all.

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Zane Gray

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Wait but don't they do some kind of background check? I thought all government agencies talk to each other about stuff like this.

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They might verify your identity and work history, but tax debt isn't part of the UI eligibility criteria in Washington state.

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I had the same worry when I filed but it turned out fine. The only thing that might happen is if you end up owing unemployment taxes later, but that's totally different from income taxes. Just file your claim as soon as possible since there's a waiting period.

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Lourdes Fox

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What do you mean by unemployment taxes? I thought unemployment was supposed to help people who lost their jobs.

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If you receive UI benefits, they're considered taxable income so you might owe taxes on them at the end of the year. But that's separate from any existing tax debt you have.

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Been dealing with Washington ESD for weeks trying to get through to someone about my claim status. If you need to actually talk to an agent, I found this service called Claimyr that helps you get through their phone system. Check out claimyr.com - they have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. Way better than sitting on hold for hours.

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Lourdes Fox

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Thanks for the tip! I'll definitely look into that if I run into issues with my claim.

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Monique Byrd

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How much does that cost though? I'm already broke from being unemployed.

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It's worth it if you really need to reach someone. Saved me so much time and frustration compared to calling on my own.

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The IRS can garnish unemployment benefits though if you owe a lot in back taxes. So while it won't stop you from getting approved, they might take some of your weekly benefit amount to pay down your tax debt.

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Lourdes Fox

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Oh no, really?? That would be a disaster for me. How much would they take?

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Bruno Simmons

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That's only for federal tax levies which are pretty rare. For $2800 they probably wouldn't bother unless you've been ignoring them for years.

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Yeah it has to go through a whole legal process first. They can't just automatically take your benefits.

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Lia Quinn

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I owed like $4000 in taxes when I got unemployment in 2023 and nothing happened with my benefits. Washington ESD doesn't care about your tax situation at all. They only care if you worked enough hours and got laid off or fired for the right reasons.

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Lourdes Fox

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That makes me feel so much better. I was laid off due to company downsizing so I should be good on that front.

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Haley Stokes

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Company downsizing is usually a slam dunk for UI benefits. You should be fine.

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Asher Levin

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Just make sure when you file that you don't mention the tax debt anywhere on your application unless they specifically ask. There's no reason to volunteer that information since it's not relevant to your UI eligibility.

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Lourdes Fox

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Good point. I was wondering if I needed to disclose it somewhere but you're right, it's not related to my job or why I got laid off.

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Serene Snow

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UGH the whole system is so confusing! I'm dealing with a similar situation but also have student loans in default. Everything feels connected when you owe money to the government but apparently unemployment is different???

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Student loan default won't affect UI either. These are all separate programs with different rules and eligibility requirements.

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Serene Snow

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Ok that's good to know. I've been putting off filing because I was scared they'd just deny me for all the debt I have.

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The only time tax issues might matter is if Washington ESD thinks you were working under the table or not reporting income properly. But regular tax debt from previous years won't stop your claim.

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Lourdes Fox

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All my work was legit W-2 jobs so that shouldn't be a problem. Thanks for mentioning that though.

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Romeo Barrett

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File your claim TODAY if you haven't already. There's a one week waiting period before benefits start and you can't get benefits for weeks you don't file. Don't let worrying about taxes delay you from getting the help you need.

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Lourdes Fox

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You're absolutely right. I'm going to file online tonight. I've been overthinking this way too much.

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Yes! The sooner you file the sooner you can start getting benefits. Tax debt is the least of your worries right now.

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Justin Trejo

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My brother owed like $6000 in taxes and got unemployment no problem. The only thing that happened was he chose to have taxes withheld from his weekly benefits so he wouldn't owe even more at the end of the year.

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Lourdes Fox

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That's actually smart. I should probably do that too so I don't make my tax situation worse.

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Justin Trejo

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Yeah they give you the option when you file. I think it's 10% or something like that.

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Alana Willis

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Washington state doesn't have income tax anyway so at least you only have to worry about federal taxes on your UI benefits. Some states tax unemployment which makes everything more complicated.

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Lourdes Fox

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True, that's one less thing to worry about. Washington is pretty good about not taxing people to death.

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Tyler Murphy

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I've been trying to reach Washington ESD for two weeks about my adjudication issue and finally used that Claimyr service someone mentioned earlier. Got through to an actual person in like 20 minutes instead of being on hold forever. Definitely recommend it if you need to talk to someone about your claim.

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Lourdes Fox

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Good to know that service actually works. I'll keep it in mind if I run into problems.

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Sara Unger

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What kind of adjudication issue did you have? I'm worried mine might get stuck in review.

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Tyler Murphy

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They needed verification of my last employer's contact info. Simple fix once I could actually talk to someone.

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The tax thing is definitely separate but just be aware that if you get a big unemployment payout, it might bump you into a higher tax bracket for this year. Plan accordingly so you're not surprised next April.

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Lourdes Fox

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Good point. I'll talk to a tax person about that once I get back on my feet financially.

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Freya Ross

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Bottom line - file your unemployment claim ASAP. Tax debt won't stop you from getting benefits and you need that income now more than you need to worry about what might happen later. Take care of immediate needs first.

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Lourdes Fox

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You're absolutely right. Thanks everyone for all the advice and reassurance. Filing my claim tonight!

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Leslie Parker

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Good luck with your claim! Hope you get approved quickly and find a new job soon.

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