Do I have to file unemployment on my taxes - Washington ESD benefits reporting

Yes, unemployment benefits from Washington ESD are considered taxable income by the IRS. You should have received a 1099-G form from Washington ESD showing the total amount you received. Even though Washington doesn't have state income tax, you still need to report it on your federal return.

I made the same mistake last year - didn't realize unemployment was taxable and got hit with a big tax bill. Now I always elect to have 10% withheld from my weekly claims just to be safe.

If you're having trouble getting through to Washington ESD about tax withholding or need to verify your 1099-G information, I found this service called Claimyr that helps you actually reach an agent. Check out claimyr.com - they have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works. Made my life so much easier when I needed to update my withholding preferences.

Wait, so if I elect to have taxes withheld from my unemployment, does that mean I get less money each week? I'm barely making ends meet as it is.

THE GOVERNMENT ALWAYS FINDS A WAY TO GET THEIR MONEY! You lose your job, struggle to get approved for unemployment, then they tax you on the measly benefits. It's ridiculous.

same thing happened to me but with my PUA benefits couple years ago

Update: I called my tax preparer back and we're setting up a payment plan with the IRS. I owe about $1,200 which is painful but manageable. Thanks everyone for the help understanding this.

I've been putting off filing my taxes because I'm scared of how much I'll owe. Got about $6,000 in unemployment last year and had no idea it was taxable.

My brother went through this exact same thing. He ended up owing like $2,000 and was so stressed about it. The payment plan really helped him though.

For anyone else reading this thread - you can avoid this surprise by electing federal tax withholding when you file your weekly claims. It's an option in your Washington ESD online account. You can choose 10% withholding which covers most people's tax obligation.

I learned about the tax thing the hard way too. Now I always tell people to treat unemployment like any other income - it's taxable.

wait so if i got unemployment in 2024 i need to report it on my 2024 taxes that i file this year?

The 1099-G form from Washington ESD should show exactly how much you received. Make sure the amount matches what you think you got - sometimes there are errors.

Just want to mention again that if anyone needs to actually talk to someone at Washington ESD about their 1099-G or tax withholding, Claimyr really does work. I was able to get through and verify my tax information without spending all day on the phone.

This is exactly why I hate dealing with government benefits. Nothing is ever straightforward and they don't explain important stuff like this upfront.

thanks for this thread everyone, i had no idea about the tax thing either and would have been in the same boat

My tax preparer told me the same thing. Unemployment is taxable income just like wages from a job. The only difference is no payroll taxes are taken out.

Update on my situation - I finally filed my taxes and owed $900 on my unemployment benefits. Set up a payment plan and it's only $75 a month. Much more manageable than I thought it would be.

PSA for everyone - if you're currently getting unemployment from Washington ESD, log into your account and elect tax withholding NOW. Don't wait until tax time to deal with this.

I'm a tax preparer and see this confusion every tax season. Yes, unemployment is taxable income. Yes, you should have taxes withheld if possible. And yes, you need to report the full amount on your tax return.