Do I pay taxes on unemployment benefits from Washington ESD?

Yes, unemployment benefits are taxable income at the federal level. Washington state doesn't have income tax so you don't worry about that part. You should have received a 1099-G form from Washington ESD showing your total benefits for the year.

You can actually have Washington ESD withhold 10% for federal taxes if you want. I learned this the hard way last year when I owed a bunch at tax time. There's an option when you file your weekly claim to have taxes withheld.

Yes, unemployment benefits are taxable income for federal taxes. Washington state doesn't have income tax so you don't worry about state taxes here. You can choose to have 10% withheld from your weekly payments through your Washington ESD account or pay quarterly/annually.

learned this the hard way last year - owed like $2800 in taxes on my UI benefits and had no idea it was coming. definitely set up withholding if you can afford to lose that 10%

If you're having trouble reaching Washington ESD to set up tax withholding, try Claimyr.com - they helped me get through to an agent when I couldn't get past the busy signals. There's a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works. Way easier than spending hours calling.

I had a nightmare trying to get through to Washington ESD about tax withholding questions last year. Spent hours on hold. Recently discovered this service called Claimyr (claimyr.com) that helps you actually reach ESD agents by phone. They have a demo video at https://youtu.be/7DieNd3C7zQ showing how it works. Might be worth checking out if you need to talk to someone about your specific tax situation.

The whole tax thing is so confusing! I thought unemployment was supposed to help us, not create more problems. Why can't they just give us the money tax-free since we're already struggling?

Just to clarify - unemployment benefits are fully taxable as ordinary income. If you're getting $550/week that's about $14,300 for the year if you collected for 6 months. Depending on your other income and tax situation, you might owe quite a bit if you haven't been withholding.

You'll get a 1099-G form from Washington ESD in January showing your total benefits for the year. Keep track of this for your tax filing. If you don't have withholding set up, consider making quarterly estimated payments to avoid a big bill.

WAIT - I've been on unemployment for 6 months and nobody told me about taxes! Am I screwed? Should I start withholding now even though I'm halfway through my claim?

Quick question - does this apply to PUA or just regular unemployment? I was on pandemic assistance last year.

Pro tip: if you're in a low tax bracket, you might not owe much anyway. Run the numbers on a tax calculator before panicking about withholding. Sometimes it's better to keep the money and pay later if you're in the 10-12% bracket.

The 10% withholding might not be enough depending on your tax bracket. I'd recommend talking to a tax professional or at least using a tax calculator to estimate what you might owe.

I hate how complicated they make everything. Like we don't have enough to worry about when we're unemployed. The tax system is just designed to confuse people.

Does anyone know if child support affects unemployment taxes? I have support taken out of my benefits and wondering if that changes anything tax-wise.

Wait, so Washington ESD automatically sends out 1099-G forms? I collected benefits for like 2 months last year and never got one. Should I be worried?

Been doing my own taxes for years and unemployment is pretty straightforward. Just treat it like any other income. The 1099-G makes it easy - just plug the numbers into your tax software.

Just a heads up - even if you don't get a 1099-G, you're still required to report the unemployment income on your tax return. Keep track of your own records.

Just a heads up - if you had taxes withheld but still owe money, it's usually because the 10% flat withholding doesn't match your actual tax rate. Might need to adjust or make estimated payments.

This is why I always tell people to read everything when they file for unemployment. The tax info is buried in there somewhere but it's important stuff.

This is exactly why I started having taxes withheld from day one. I learned from my brother's mistake - he owed thousands because he didn't withhold anything from his UI benefits.

The Washington ESD website has a whole section about taxes and unemployment benefits. It explains the withholding process pretty clearly. Might be worth checking out before you make any changes.

One thing to consider - if you're expecting to return to work soon and will be in a lower tax bracket this year, you might not need to withhold as much. But if you're unsure, it's better to overwithhold than underwithhold.

Question about timing - if I start withholding taxes now in November, will that cover what I owe for the whole year or just going forward?

One more thing to consider - if you find work and go back to regular wages, remember you still owe taxes on the unemployment you received. Don't forget about it just because you're working again.

Thanks everyone for all this info! I'm going to log into my Washington ESD account tonight and set up the 10% withholding. Better safe than sorry, and it sounds like trying to save the money myself might not work out.

I used Claimyr last month when I needed to ask about my 1099-G from the previous year. Worked great - got through to an ESD agent in like 20 minutes instead of spending all day calling. Definitely recommend it for tax-related questions.

Just remember that if you have taxes withheld, it comes out of your weekly benefit amount. So if you're getting $550 now, you'd get $495 with 10% withholding.

The IRS treats unemployment benefits the same as wages for tax purposes. So yeah, definitely taxable. I always tell people to treat it like any other income when it comes to taxes.

Pro tip: if you do owe taxes on your unemployment benefits, the IRS has payment plans available. Don't panic if you can't pay it all at once.

I'm in the same boat - been collecting for 3 months and just started thinking about taxes. Going to set up withholding on my next weekly claim. Thanks for asking this question!

For what it's worth, the 1099-G will show your total benefits AND any taxes that were withheld. So if you start withholding now, it'll show up on next year's form.

Washington ESD's customer service for tax questions is actually pretty helpful if you can get through. But like others mentioned, Claimyr seems to be the way to go for actually reaching them.

Just wanted to add - make sure you keep all your unemployment paperwork organized for tax time. Weekly claim confirmations, payment records, etc. Makes filing much easier.

Thanks everyone for all the helpful info! I'm going to set up tax withholding on my next weekly claim and keep better track of everything. Really appreciate all the advice.