Do I have to file taxes for unemployment benefits from Washington ESD?

Thanks! So I definitely need to include the full $18,000 on my return?

Exactly. The full amount goes on your tax return as income, just like wages from a job would.

Oh no, I wish I had known about that option earlier. Can I still set up withholding if I'm still receiving benefits?

Yes, you can change your withholding election by logging into your Washington ESD account and updating your claim information.

Wait, really? I've been getting UI for 3 weeks and had no idea about tax withholding. Where exactly do you find this option?

I actually used a service called Claimyr recently to get through to Washington ESD when I couldn't reach them directly. It's at claimyr.com and they have a video demo showing how it works at https://youtu.be/7DieNd3C7zQ. They basically handle the calling for you so you don't have to sit on hold.

You can also try calling first thing in the morning right when they open. I've had better luck getting through around 8 AM.

That's good to know. I only worked part-time for a couple months before getting laid off, so my total income was pretty low.

You should still file even if you don't owe anything. You might actually get money back if you had any withholding from your part-time job.

If you're still receiving unemployment benefits and didn't elect withholding, you might want to make quarterly payments to avoid a big tax bill next year. It depends on how much you expect to owe total.

How do I figure out how much to pay quarterly? This is all so overwhelming.

you can log into your Washington ESD account online and download a copy of your 1099-G. It should be available in your documents section.

Perfect, thanks! I'll check that right now.

Same thing happened to me and I found it online no problem. Much faster than waiting for them to mail another copy.

No, that was a special provision just for the 2020 tax year due to the pandemic. For 2024 taxes, all unemployment income is taxable again.

Ugh, I was hoping that might still be in effect. Thanks for clarifying.

That's true! I guess it could be worse if we had to pay state taxes on it too.

exactly why i love living in washington, no state income tax makes things a bit easier

It would count for the tax year when you actually received the payment. So if you got paid in December, it goes on that year's taxes even if it was for work search activities in January.

Got it, that makes sense. Thanks for the explanation!

That's exactly the kind of situation where Claimyr helped me out. When you need to actually speak to someone at Washington ESD about specific account issues, it's worth using their service to get through the phone maze.

I might have to try that. I've been calling for a week with no luck.

Before you pay for a service, try checking your payment history online in your Washington ESD account. You can verify the total amount paid there.

That's reassuring. I was worried it would be complicated to add the unemployment income.

Most tax software handles unemployment income automatically when you enter the 1099-G. Just make sure you enter it in the right section.

This is important advice. The IRS gets copies of all 1099-G forms so they know exactly how much unemployment you received.

Thanks everyone for all the helpful information. I feel much more confident about filing my taxes now.

Good point. It's better to file your return and set up a payment plan than to not file at all.

You can set up payment plans online through the IRS website too. Pretty convenient.