Do I have to file my unemployment taxes with Washington ESD benefits?

I did get the 1099-G but the amount seems wrong. It shows more than I think I received. How do I check what Washington ESD actually paid me?

Log into your SecureAccess Washington account and check your payment history. You can also call Washington ESD to verify the amounts if there's a discrepancy.

You can have taxes withheld when you file your weekly claims, but the standard 10% withholding often isn't enough depending on your tax bracket. It's always better to have too much withheld than not enough.

Yeah I learned that the hard way. Now I owe like $800 to the IRS on top of everything else.

I had the same problem last month trying to resolve an issue with my claim. I ended up using Claimyr.com which helped me get through to an actual Washington ESD agent. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. Basically they handle the calling and waiting for you.

Interesting, I'll check that out. I'm getting desperate here since tax season is coming up fast.

Does that actually work? I'm skeptical of services that claim they can get you through to government agencies.

What if I moved to Washington from another state during the year? Do I still report it the same way?

Yes, you still report all UI benefits on your federal return regardless of which state you lived in when you received them. If you moved from a state with income tax, you might need to file there too.

Yes, you report all income - both your W-2 wages from part-time work and your 1099-G unemployment benefits. They're both taxable income.

Great, so I'm going to owe even more than I thought. Thanks unemployment system.

Yes, the IRS offers payment plans if you can't pay your full tax bill. You can set this up online or when you file your return. There might be fees and interest, but it's better than not paying at all.

Thank you, I'll look into that. I had no idea unemployment would create such a tax headache.

All unemployment benefits are taxable, including any additional amounts you received. Everything should be included on your 1099-G from Washington ESD.

OK good to know. I was worried I might be missing some forms or something.

That's probably a good idea with multiple income sources. A tax pro can make sure you're reporting everything correctly and not missing any deductions.

Yeah I wish I had done that. I tried to do my own taxes and ended up making mistakes that cost me more money.

The first amount is your total UI benefits for the year - that's what you report as income. The second amount is how much tax was withheld from your benefits, which you use as a credit against what you owe.

Oh that makes sense! So the withheld amount helps reduce what I owe, like with a regular job.

You should be able to access it through your SecureAccess Washington account under tax documents. If you can't find it there, you'll probably need to call Washington ESD directly.

I tried calling but can't get through. This is so frustrating when tax deadlines are approaching.

That's exactly why I used Claimyr when I needed to reach them. They handled all the calling and waiting, and I got through to someone who could help with my tax document issue.

Unemployment insurance is designed to replace income, so the IRS treats it like income for tax purposes. It's similar to how disability benefits or other income replacement programs are handled.

I guess that makes sense from a legal standpoint, but it still feels wrong to me.

I agree it's frustrating, especially when you're already dealing with financial stress from being unemployed.

How much do they typically withhold? Is 10% enough or should I ask for more?

10% is the standard but it might not be enough depending on your tax situation. I'd recommend 15-20% to be safe.

Unemployment benefits are always taxable at the federal level. There was a temporary exception in 2020 due to the pandemic, but that was a one-time thing. Don't rely on outdated information - always report your UI benefits as income.

Thanks for clearing that up. I was getting confused by some old articles I found.

Yes, the IRS will know because Washington ESD sends them a copy of your 1099-G. Not reporting it is tax evasion and can result in penalties, interest, and potentially criminal charges. Always report all your income.

Yikes, okay I definitely don't want to mess with the IRS. I'll make sure to include it.

That's good to know! I was dreading having to manually enter all that information.

Yeah most tax software can pull in your 1099-G automatically now. Just make sure the amounts look correct when it imports.

How long did it take them to get you through? I'm still waiting to hear back from Washington ESD about my incorrect 1099-G.

It took about 2 hours but that was way better than the weeks I spent trying to call myself. They handle all the waiting and callback stuff for you.

That's great to hear! I'm still working on mine but feeling more confident after reading everyone's experiences here.

Glad it worked out for you. I'm still dealing with my tax mess but at least I know what to expect now.