Do u pay taxes on unemployment benefits from Washington ESD?

I haven't gotten any 1099-G form yet. When are they supposed to send those out?

Washington ESD typically sends them by January 31st. You can also access it online through your SecureAccess Washington account if you need it sooner.

Wait, they can take taxes out automatically? I wish I had known that months ago when I was filing my weekly claims.

Yeah, it's usually 10% federal withholding. You can change it when you file your next weekly claim if you're still receiving benefits.

How much does that Claimyr thing cost? I'm already struggling financially.

It's worth it when you consider how much time you save vs calling for hours. The agent I reached cleared up all my tax withholding questions in like 10 minutes.

I tried that service too after seeing it mentioned here. Actually worked pretty well for getting my 1099-G questions answered.

That's a relief about state taxes at least. Do you know what tax rate they usually charge on unemployment income?

It depends on your total income for the year and tax bracket. Unemployment gets added to your other income and taxed at your regular rate.

They do mention it in the initial paperwork and on the website, but it's easy to miss among all the other information. Always good to ask about tax implications early.

maybe i missed it but still seems like something they should emphasize more

Same here. The good news is if you're getting a refund from your regular job withholdings, it might offset what you owe on the unemployment.

That's what I'm hoping for. My employer took out plenty during the months I was working.

I understand the frustration, but remember that unemployment benefits are meant to replace your regular wages temporarily. Regular wages are also taxed, so it makes sense that unemployment would be too.

I guess that makes sense when you put it that way. Still annoying though.

yeah but when youre already stressed about money the last thing you want is surprise tax bills

Good to know! I'm not receiving benefits anymore but I'll remember that for the future if needed.

Yeah, it's one of those things you learn the hard way. Better to have it taken out upfront than deal with a surprise bill later.

Does it actually work or is it just another scam? I'm skeptical of anything that promises to get you through to government agencies.

I was skeptical too but it's legit. They don't make any unrealistic promises, just help you get connected faster than calling directly.

Wow, $900 is a lot. How much did you receive in unemployment to owe that much?

I received about $12,000 total and was in a higher tax bracket because of my other income. It varies depending on your situation.

This is exactly what I'm worried about happening to me

Good point about not trying to hide it. The government agencies share information so they'll definitely know if you received unemployment benefits.

Thanks for all the help everyone. I feel much more prepared to handle this now.

That's a good strategy for people who are receiving benefits for most of the year. Helps avoid a big bill at tax time.

Exactly. I wish I had known about this option earlier.

Your friend might be confused about Washington not having state income tax. But federal taxes still apply to unemployment benefits no matter what state you're in.

ah ok that makes sense, thanks for clearing that up

How long did it take them to get you connected to an agent?

It was pretty quick, maybe 15-20 minutes total including the call with the agent. Way better than spending hours on hold.

Smart planning! It's always better to be prepared for potential tax obligations.

Yeah, learned that lesson from reading everyone's experiences here.

There aren't specific deductions for unemployment taxes, but your regular deductions and credits still apply. Job search expenses used to be deductible but that changed with recent tax law updates.

Thanks, I'll make sure to claim all my regular deductions then.

Glad this thread helped you too! I feel much less anxious about the whole situation now.

Same here. Knowledge is power when it comes to taxes.

Great reminder. The online version is usually available even before the paper copy arrives in the mail.

Perfect, I'll check my account tonight. Thanks again everyone for all the helpful information!