Do they tax unemployment benefits in Washington ESD - confused about tax implications

So it's optional? What percentage do they usually take out if I choose withholding?

It's 10% for federal withholding. You can request this when you're filing your weekly claims or update your account settings.

Ouch, that's a painful lesson. Did you have to pay penalties too?

Fortunately no penalties since I paid it all when I filed, but it was a shock I wasn't prepared for.

That's good to know about no state taxes. So if I'm only working part-time plus unemployment, the 10% should be enough?

For most people yes, but everyone's situation is different. You might want to talk to a tax preparer if you're unsure.

Really? I've been trying to call for days to update my withholding status. How does that service work exactly?

You basically schedule a callback and they handle getting you connected to Washington ESD. Way better than sitting on hold for hours or getting disconnected.

I'm skeptical of these third-party services. Isn't it better to just keep trying to call directly?

I thought the same thing until I wasted three full days trying to get through. Sometimes you just need to talk to someone and this actually worked.

Yes, you can change your withholding election at any time. Just log into your Washington ESD account and update your tax withholding preferences. It will apply to future payments.

thank god. I was freaking out thinking I messed up permanently

Agreed! They should make it more prominent in the application process instead of burying it in the settings.

I think they mention it briefly when you file but there's so much information to process during that initial claim that it's easy to miss.

Do they mail it or is it electronic? I moved recently and haven't updated my address yet.

They usually mail it, but you should be able to access it online through your Washington ESD account too. Definitely update your address though!

That's smart planning. Better to have a little extra withheld than scramble to pay taxes later.

Exactly. I learned my lesson from a previous year when I didn't have enough withheld from my regular job.

You only get taxed on benefits you actually receive. Since Washington has a non-payable waiting week, there's nothing to tax for that first week.

Makes sense, thanks for clarifying that!

Good point! I'm working 20 hours a week plus getting partial unemployment. Should I increase my withholding at work?

It wouldn't hurt to have a little extra withheld, especially if you're close to the next tax bracket. Better safe than sorry.

How much does it cost? I'm on unemployment so money's tight.

I don't remember the exact cost but it was worth it to actually talk to someone instead of wasting whole days calling. Check their website for current pricing.

I used it too and found the cost reasonable considering how much time it saved me. Plus you can resolve multiple issues in one call.

How long do you have to file an amended return? Asking for a friend who may have forgotten to include their 1099-G...

You have three years from the original due date to file an amendment. But don't wait - the sooner the better!

You've all convinced me. I'm going to set up withholding tomorrow. Thanks everyone for the advice!

Smart choice! You'll thank yourself next tax season.