Do I file unemployment on my taxes - Washington ESD unemployment benefits tax questions
I received unemployment benefits from Washington ESD last year and I'm really confused about filing taxes. Do I need to report the unemployment money I got? I received around $8,400 total in UI benefits and I'm not sure if this counts as income or what forms I need. My friend said unemployment isn't taxable but that doesn't sound right to me. Can someone help me understand what I need to do for my 2024 taxes?
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Kaylee Cook
Yes, unemployment benefits are definitely taxable income that you need to report on your federal tax return. Washington ESD should have sent you a 1099-G form showing the total amount you received in 2024. You'll report this on your Form 1040.
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Morgan Washington
•I haven't gotten any 1099-G form yet. When are they supposed to send those out?
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Kaylee Cook
•They're usually mailed by January 31st, but you can also access it online through your SecureAccess Washington account if you haven't received it yet.
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Oliver Alexander
Your friend is wrong - unemployment is absolutely taxable at the federal level. However, Washington state doesn't have state income tax so you don't need to worry about that part.
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Lara Woods
•this is why i hate tax season, so confusing with all these different rules
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Adrian Hughes
•The federal tax on unemployment can be a surprise if you didn't have taxes withheld during the year. You can actually request withholding when you file your weekly claims.
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Molly Chambers
I had the same confusion last year. The 1099-G will show your total unemployment compensation in Box 1. That full amount goes on Line 7 of Form 1040 as unemployment compensation.
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Morgan Washington
•Did you owe a lot in taxes because of the unemployment? I'm worried I'm going to get hit with a big bill.
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Molly Chambers
•It depends on your total income for the year. If unemployment was your only income, you might not owe much depending on your filing status and deductions.
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Ian Armstrong
If you can't find your 1099-G form, you can call Washington ESD to get a copy, but good luck getting through on the phone! I spent hours trying to reach them last year. Actually, I ended up using this service called Claimyr (claimyr.com) that helped me get through to an actual person at Washington ESD. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. Made the whole process so much easier.
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Eli Butler
•Never heard of Claimyr but anything is better than sitting on hold for 3 hours just to get disconnected
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Morgan Washington
•Thanks for the tip! I'll check that out if I can't get my 1099-G online.
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Adrian Hughes
Important reminder: If you had federal taxes withheld from your unemployment payments, that will show up in Box 4 of your 1099-G. This counts toward your tax payments for the year, just like withholding from a regular job.
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Morgan Washington
•How do I know if I had taxes withheld? I don't remember making that choice.
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Adrian Hughes
•Check your payment history in your Washington ESD account. If taxes were withheld, your actual payments would have been less than your weekly benefit amount.
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Marcus Patterson
•I wish someone had told me about the withholding option when I first filed. Got hit with a big tax bill last year because I didn't know.
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Lara Woods
wait so unemployment counts as regular income for tax purposes? thats so stupid, we're already struggling
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Kaylee Cook
•I understand the frustration, but unemployment benefits are considered taxable income by the IRS. It's been that way for decades.
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Oliver Alexander
•The good news is if your total income including unemployment is low enough, you might qualify for earned income tax credit or other credits that could reduce what you owe.
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Eli Butler
Pro tip: Keep all your job search records and receipts. Some job hunting expenses might be deductible, though the rules changed a few years ago so check with a tax professional.
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Morgan Washington
•What kind of job search expenses? Like gas money to interviews?
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Eli Butler
•The rules are complicated now. Used to be able to deduct things like resume printing, travel to interviews, etc. but most of those deductions were eliminated in 2018. Best to ask a tax preparer.
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Marcus Patterson
Does anyone know if there are any special rules for people who got unemployment because of COVID layoffs? I was on regular UI for most of 2024 after my restaurant closed permanently.
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Kaylee Cook
•No special tax treatment for COVID-related unemployment in 2024. The special rules that existed in 2020-2021 have expired.
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Marcus Patterson
•Okay thanks, I wasn't sure if there were still any pandemic provisions in effect.
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Lydia Bailey
Make sure you double-check that your 1099-G is accurate before filing your taxes. Sometimes Washington ESD makes mistakes on the forms. If there's an error, you'll need to contact them to get a corrected version.
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Morgan Washington
•How would I know if it's wrong? Just compare it to my payment records?
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Lydia Bailey
•Exactly. Add up all the payments you received in 2024 and make sure it matches Box 1 on the 1099-G. Also verify the withholding amount in Box 4 if applicable.
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Mateo Warren
Filing unemployment on taxes is straightforward once you have the 1099-G. Just enter the amount from Box 1 as unemployment compensation on your tax return. If you use tax software like TurboTax or H&R Block, it will walk you through exactly where to enter it.
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Morgan Washington
•That's reassuring. I was worried it would be super complicated.
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Lara Woods
•yeah the tax software makes it pretty easy, just expensive lol
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Sofia Price
One thing to watch out for - if you received unemployment overpayments that you had to pay back, that affects your taxes too. The amount you actually kept is what's taxable, not the gross amount originally paid.
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Morgan Washington
•Thankfully I didn't have any overpayment issues. That sounds like it would make taxes even more complicated.
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Sofia Price
•It can be tricky. If you repaid an overpayment in the same tax year, you only report the net amount. If you repaid in a different year, there are special rules to follow.
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Ian Armstrong
Just want to follow up on my earlier comment about getting your 1099-G from Washington ESD. I used Claimyr again this year when I had questions about my form, and they're still the best way to actually reach someone at ESD without the endless phone tree nightmare. Worth every penny to avoid that frustration.
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Alice Coleman
•How much does Claimyr cost? Might be worth it to avoid the phone hassle.
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Ian Armstrong
•They don't publish pricing on their site, but it's reasonable considering the time and frustration it saves. Check out their demo video to see how it works.
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Owen Jenkins
I'm a tax preparer and see this question every year. Yes, unemployment is taxable income at the federal level. Washington state has no income tax so you don't file state returns here. Make sure you have your 1099-G before filing, and consider having taxes withheld if you think you'll need unemployment again.
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Morgan Washington
•Thanks for the professional perspective! Do you recommend people always withhold taxes from unemployment?
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Owen Jenkins
•It depends on your situation. If unemployment will be your primary income and you don't have other withholding, yes. If it's temporary and you have a job with withholding, maybe not needed.
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Lilah Brooks
Quick question - if I only received unemployment for part of the year before getting a new job, do I still need to report it on my taxes?
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Kaylee Cook
•Yes, any unemployment income you received during the tax year needs to be reported, regardless of how long you were on unemployment.
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Lilah Brooks
•Got it, thanks. I was only on UI for about 6 weeks but I'll make sure to include it.
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Jackson Carter
Don't forget that if you're married filing jointly, your spouse's income affects your tax bracket too. The unemployment income gets added to your combined income, which might push you into a higher bracket.
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Morgan Washington
•I'm single so that's not an issue for me, but good point for married people to consider.
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Kolton Murphy
•Yeah my husband's income plus my unemployment definitely bumped us up. We had to pay more than expected.
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Evelyn Rivera
PSA: If you move to a different state during the year, you might need to file returns in multiple states. But since Washington doesn't have income tax, if you moved FROM Washington, you probably only need to file in your new state.
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Morgan Washington
•That's good to know. I stayed in Washington all year so I don't have to worry about that complication.
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Julia Hall
I tried calling Washington ESD yesterday to ask about my 1099-G and couldn't get through after 2 hours of trying. The phone system is absolutely awful. Finally gave up and found it online through SecureAccess Washington.
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Arjun Patel
•The online access is definitely faster than trying to call. I found my 1099-G there within minutes.
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Ian Armstrong
•This is exactly why I recommend Claimyr for anyone who actually needs to speak with Washington ESD staff. The regular phone system is basically unusable.
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Jade Lopez
For anyone still confused: Unemployment = taxable income. You report it on Line 7 of Form 1040. You'll get a 1099-G showing the amount. If you had federal taxes withheld, that goes on your withholding line just like regular job withholding. It's really not that complicated once you understand the basics.
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Morgan Washington
•Thanks everyone for all the help! I feel much more confident about handling this on my taxes now.
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Tony Brooks
•Glad this thread was helpful. Tax season is stressful enough without being confused about unemployment reporting.
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