Do you have to file taxes for unemployment benefits from Washington ESD?

I haven't gotten any 1099-G form yet. When do they usually send those out?

They should be mailed by January 31st. You can also access it online through your SecureAccess Washington account if you need it sooner.

Unfortunately it's been taxable for decades. Many people don't realize this until tax time. The good news is you can have taxes withheld from future UI payments if you need to file again.

ugh i owe so much money now probably

How do you set that up? I wish I had known about this option earlier.

When you file your weekly claim on the Washington ESD website, there's a section about tax withholding. You can change it anytime during your claim period.

I tried to call Washington ESD to ask about changing my tax withholding but could never get through. Spent hours on hold. Finally found this service called Claimyr at claimyr.com that actually got me connected to an agent. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works. Game changer for reaching Washington ESD staff.

That's a relief at least! One less tax form to worry about.

True but some people move to other states during their claim period and that can complicate things if the new state has income tax.

Ouch, that's a big hit. Did you have to set up a payment plan with the IRS?

Yeah, had to do monthly payments. Not fun but better than one huge lump sum.

this is making me really nervous about what i'm going to owe

I tried logging in but my account got locked somehow. The password reset isn't working either.

Account lockouts are common. You'll need to call the technical support line, though it can take a while to get through.

Same thing happened to me. I used Claimyr to get connected to someone who could unlock my account. Much faster than trying to call directly.

Yes, any amount of unemployment benefits needs to be reported as income, even if it's just a few hundred dollars.

Okay thanks, just wanted to make sure I wasn't missing anything important.

Yes, all the federal supplements like FPUC were taxable too. However, there was a special exclusion for some of it in 2020 tax returns, but that was a one-time thing.

Thanks, I'll need to dig up those old 1099-G forms then.

I didn't know unemployment could count toward that. Thanks for the tip!

Also look into free tax prep services if your income was under certain thresholds. VITA sites can help with unemployment tax issues.

The IRS has payment plan options if you can't pay your full tax bill. You can set up installments online or by calling them. There will be some interest and fees, but it's better than not paying at all.

ok good to know there are options, was really stressing about this

Also consider adjusting your withholdings for any future unemployment benefits so this doesn't happen again.

Agreed! I think they mention it somewhere but it's easy to miss when you're stressed about losing your job and just trying to get benefits started.

They do have the tax withholding option right there when you file weekly claims, but a lot of people just click through without reading carefully.

True, but they could make it more obvious that not withholding means you'll owe money later.

That's reassuring. I'll definitely remember the withholding option if I ever need unemployment again.

The 10% might not be enough if you have other income during the year or if you're in a higher tax bracket, but it's a good starting point.

How long did it take you to get through to someone?

About 45 minutes of waiting, but I used that Claimyr service someone mentioned earlier. Made the whole process much smoother than my usual experience calling Washington ESD.

What kind of errors should people look for on their 1099-G?

Wrong amounts, wrong dates, or benefits showing up that you didn't actually receive. The agent said they see quite a few errors each tax season.

Same here! Definitely learned something new today. Thanks everyone for the advice.

Glad I found this discussion before I filed my taxes and forgot to include the unemployment income.