Do you have to file unemployment on taxes Washington ESD benefits?

I didn't have any taxes withheld because I needed every dollar I could get. Am I totally screwed now?

Not necessarily screwed, but you will owe taxes on the full amount. Consider filing as soon as possible and look into payment plan options if you can't pay the full amount.

I wish someone had explained this to me when I first filed! The withholding option wasn't very clear on the website.

Yeah, they could definitely make it more obvious. It's buried in all the other questions they ask during the initial application process.

Wait, what kind of discrepancy? Now I'm worried my 1099-G might be wrong too.

They had included some payments from a brief period where I was working part-time and shouldn't have been getting benefits. Got it corrected and saved about $300 in taxes.

How much does that Claimyr thing cost? Seems too good to be true if it actually gets you through to Washington ESD.

Honestly don't remember the exact cost but it was worth it to avoid the phone runaround. Way cheaper than paying taxes on incorrect amounts.

1099-G forms are typically mailed by end of January. Check your address on file with Washington ESD - they might have an old address.

Oh crap, I moved twice last year. How do I get a copy of the form?

You can download it from your SecureAccess Washington account online. Should be under tax documents or something similar.

You report everything separately - your W-2 from part-time work and your 1099-G from unemployment. The waiting week isn't taxable since you didn't receive payment for it.

That makes sense. Thanks for clarifying!

I mean, unemployment IS income though. It's money you received that you didn't have before.

It's insurance we paid into through our paychecks. Shouldn't be taxed twice.

The premiums you paid aren't taxed, but the benefits are. It's similar to how disability insurance works.

How do I know if I qualify for those credits? My total income was probably around $25,000 including the unemployment.

Definitely look into it. The EITC has income limits that vary by filing status and number of dependents. Most tax software will calculate it automatically.

Washington doesn't have a state income tax, so you don't have to worry about that part.

Oh right, forgot about that! One less thing to worry about then.

I'd recommend it if you can afford the reduced payments. Standard withholding is 10% federal. Better to get a smaller refund than owe a big chunk.

That makes sense. 10% isn't too bad if it saves me from this stress next year.

You can change your withholding election anytime during your claim period if your situation changes.

He might be thinking of certain pandemic-era relief that had special tax treatment, but regular unemployment benefits are taxable income federally in all states.

Ah okay, that makes more sense. He probably got confused about the COVID stuff.

The IRS has payment plan options and sometimes offers hardship deferrals. Don't ignore it though - the penalties and interest add up fast.

Good to know there are options. I was starting to panic thinking they'd garnish wages I don't even have.

Most tax software will walk you through it. Don't stress too much - owing taxes means you received money when you needed it.

If you need to double-check anything with Washington ESD about your payment history, that Claimyr service I mentioned really does work. Saved me a lot of headache last year.

It's a common misconception. Washington ESD could definitely do a better job explaining the tax implications upfront.

Absolutely. Would have saved me a lot of stress and financial planning if I'd known from the start.

Yes, each state will issue their own 1099-G for the benefits they paid. You'll need to report both on your federal return.

Thanks! That's what I figured but wanted to make sure.

I get the frustration but it's been taxable for decades. At least we have the benefits available when we need them.

Fair point. Better than some countries where unemployment support is way more limited.

Thanks for the clear summary! Sometimes you need it spelled out that simply.

Exactly. I see too many people panic about this stuff when it's really pretty straightforward once you understand the basics.

Good point. The 1099-G shows total benefits paid, but if you had any overpayments that you repaid, those might affect your taxable amount.

Exactly. Always worth double-checking the details rather than just plugging in numbers blindly.

Smart move. It's one of those things where a little pain now saves a lot of pain later.

Same here. I was on the fence about it but this discussion convinced me.

They're required to mail them by January 31st, but you can usually access them online earlier. Check your SecureAccess Washington account.

Just checked and it's there! Thanks for the tip.

Wish I'd done that. Had to go back through months of bank statements to verify everything.

Yeah, lesson learned for next time hopefully! Organization pays off during tax season.