Do I have to pay taxes on Washington ESD unemployment benefits?

I don't remember seeing that option anywhere. How do I set up tax withholding now?

Log into your SecureAccess Washington account and look for tax withholding options in your claim maintenance section. You can change it at any time.

Oh no, that's exactly what I was afraid of. $2,400 is a lot of money I don't have.

You can also make quarterly estimated tax payments to the IRS if you want to avoid a big bill at tax time. Form 1040ES has the worksheets.

I had the same problem until I found Claimyr.com - it's a service that calls Washington ESD for you and gets you connected to an actual agent. Worked great for me when I needed to update my tax settings. There's a demo video at https://youtu.be/7DieNd3C7zQ showing how it works.

Interesting, never heard of that. Does it actually work or is it just another scam?

Totally legit. I was skeptical too but they got me through to Washington ESD in about 20 minutes instead of me spending hours trying to call.

Unfortunately yes, it's been federal law for decades. Think of unemployment as replacement income - just like your regular paycheck would be taxed.

I know it sucks but at least we're getting something. Better than nothing during tough times.

10% seems reasonable. Better to have too much withheld than owe money later.

Exactly what I did. Had them take out 10% from the beginning and got a small refund instead of owing.

Good point. I'll definitely check that when it comes.

Yes, and if there are errors, contact Washington ESD immediately for a corrected 1099-G. Don't just adjust it yourself on your tax return.

That used to be true but the job search deduction was eliminated in 2018 tax reform. Unfortunately you can't deduct those expenses anymore.

dang really? my guy must be behind on the rules then. thanks for the correction

12% sounds smart. I'm going to log in right now and set that up.

Same here. Peace of mind is worth more than the temporary extra cash.

The child tax credit will help offset your tax liability from unemployment income, just like it would with regular wages. But you still need to report the unemployment as income.

Ok that makes sense. So I might not owe as much as I thought.

Have you tried using Claimyr? My neighbor used it to help her dad with his Washington ESD issues. It calls and waits for you so you don't have to sit on hold forever.

Never heard of it but willing to try anything at this point. Thanks for the suggestion.

Correct, the 1099-G shows the gross amount of benefits paid to you. The taxes withheld will be shown separately, just like on a W-2 from an employer.

Perfect, thank you. I was worried I'd have to do extra math to figure out the right numbers.

I think it's because some people prefer to get the full amount and handle taxes themselves. But I agree it should be more clearly explained during the application process.

yeah they should make it opt-out instead of opt-in. most people would want taxes taken out automatically

Thank you! I just did the same thing and set it to 10% withholding. Feel much better now.

Great tip, just updated mine too. Should have done this months ago but better late than never.

Good point. We always end up owing because of this exact situation. I have mine set to 15% withholding.

I'm single so 10% should be fine for me, but thanks for mentioning this for others.

Absolutely. And if you move to another state, make sure your address is updated with Washington ESD so you receive your 1099-G.

Can confirm this - moved to Oregon last year and almost didn't get my tax form because I forgot to update my address.