Do you get taxed on unemployment benefits from Washington ESD?

Oh no I don't think I selected any tax withholding when I filed. How do I change that now?

Log into your Washington ESD account and look for tax withholding options under your profile or payment settings. You can update it anytime.

That's actually a relief! So it's just federal taxes I need to worry about then.

Exactly right. Washington is one of the few states with no income tax so unemployment recipients here have it a bit easier than most other places.

Wow $800 is a lot! I definitely want to avoid that. Did you have any trouble changing your withholding with Washington ESD?

Not really, it was pretty straightforward once I found the right section in my online account. Just took a couple clicks to set up the withholding.

Same thing happened to me but I only owed like $300. Still sucked though when you're already strapped for cash.

Thanks for the tip! I've tried calling Washington ESD before and could never get through. How does Claimyr work exactly?

It basically automates the calling process and waits on hold for you so you don't have to sit there for hours trying to get through. Pretty handy for stuff like this where you need to talk to someone at Washington ESD.

Good to know about the 10% option. I think I'll go ahead and set that up so I don't have to worry about it later.

That's smart. Better to get a small refund than owe money you don't have.

I worked for about 8 months before getting laid off so yeah I'll have regular W2 income too. Definitely sounds like I should do the withholding then.

Yeah with 8 months of regular wages plus unemployment you'll want to be careful about having enough withheld for taxes.

When do they usually send those out? Is it with all the other tax forms in January?

Yes typically by the end of January. You should also be able to download it from your Washington ESD online account.

Just make sure your address is current with Washington ESD so the 1099-G gets mailed to the right place.

Not necessarily - it depends on your total income for the year and what you had withheld from other jobs. But you should probably look into having some withheld going forward just to be safe.

ugh this is so confusing. i thought unemployment was like welfare or something and wouldnt be taxed

Unfortunately unemployment insurance benefits are taxable income. It's different from programs like food stamps or cash assistance which aren't taxed.

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

Smart move. I wish I had done that from the beginning instead of learning the hard way.

That's good to know! I might give it a try if I can't figure out the tax withholding thing on my own.

How much does Claimyr cost? Is it worth it just for something like changing tax withholding?

I thought it was worth it since I had been trying to get through to Washington ESD for weeks on my own. Sometimes it's just easier to get help from an actual person.

That's good advice but I'm already pretty tight on money. I think having it withheld automatically will be easier for me.

Yeah automatic withholding is definitely the safer route if you're already struggling to make ends meet.

No it shouldn't affect the timing of your payments at all. The withholding just means they send less money to you and more to the IRS, but the processing time stays the same.

Cool thanks. I was worried it might slow things down somehow.

There aren't any special deductions just for unemployment recipients, but you can still claim all the regular deductions like standard deduction, child tax credit if you have kids, etc. Just treat the unemployment income like any other income on your tax return.

Got it, that makes sense. Thanks for clarifying!

How long did it take to get through when you called? Everyone says the wait times are terrible.

It took me about 45 minutes of being on hold the first time. The second time I used that Claimyr thing and got through much faster - maybe 15 minutes total.

Good to know! Hopefully I won't need that if I set up withholding now, but it's reassuring to know there are options.

Yeah the IRS payment plans are actually pretty reasonable. Much better than trying to ignore the problem.

That's exactly how I'm thinking about it. I'd rather be safe than sorry.

how much less do you get with the 10% taken out?

Well if you normally get $300 a week, with 10% withheld you'd get $270. So $30 less per week in my example.

I think they do mention it somewhere in the paperwork but it's easy to miss when you're stressed about being unemployed and just trying to get benefits started.

Yeah you're probably right. I was definitely not reading everything carefully when I first applied.

Oh that's a good point! I hadn't thought about tracking those expenses.

Yeah it's not a huge deduction usually but every little bit helps when you're dealing with unemployment.

Great job getting that sorted out! You'll be glad you did it when tax time rolls around.

Awesome! You're way ahead of where I was at this point in my unemployment.

Perfect! Now you can focus on your job search without worrying about a surprise tax bill later.

Seriously! I'm just glad I found out about it now instead of next April.

Yeah this is definitely one of those things they should make more obvious when you first apply for benefits.