Do you have to pay federal taxes on Washington ESD unemployment benefits?
I'm getting my first unemployment payments from Washington ESD and I'm confused about taxes. Do I need to pay federal taxes on these benefits? I heard conflicting info - some people say yes, others say no. I don't want to mess this up when tax season comes around. Should I have taxes withheld from my weekly claims or just pay later? Any advice would be helpful!
45 comments

Lucas Kowalski
Yes, unemployment benefits are considered taxable income by the IRS. You'll receive a 1099-G form showing how much you received. You can choose to have 10% federal tax withheld when you file your weekly claims on the Washington ESD website.
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Emma Bianchi
AuthorThanks! How do I set up the withholding? Is it somewhere in my SecureAccess Washington account?
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Lucas Kowalski
When you file your weekly claim there's a question asking if you want federal taxes withheld. Just answer yes and they'll automatically deduct 10%.
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Olivia Martinez
I learned this the hard way last year - owed like $800 in taxes because I didn't know unemployment was taxable! Definitely have them withhold the taxes, it's worth it to avoid a big bill later.
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Charlie Yang
Ouch, that's rough. I'm having the same issue trying to figure out Washington ESD tax stuff.
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Grace Patel
You can also make quarterly estimated tax payments if you prefer to handle it yourself rather than having Washington ESD withhold.
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ApolloJackson
I've been trying to call Washington ESD for weeks to ask about this exact thing but can never get through. Their phone system is impossible - always busy or hangs up on me. Anyone else having trouble reaching them?
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Isabella Russo
Same problem here! I've called probably 50 times and never talked to a real person.
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Rajiv Kumar
Try using Claimyr.com - they help you get through to Washington ESD agents. I saw their demo video at https://youtu.be/7DieNd3C7zQ and it actually works. Finally talked to someone about my tax withholding question.
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Grace Patel
For 2024 tax year, unemployment benefits are fully taxable at federal level. Washington state doesn't have income tax so no worries there. The 1099-G will show your total benefits in Box 1.
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Emma Bianchi
AuthorGood to know about no state tax. So it's just federal I need to worry about?
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Grace Patel
Correct, only federal taxes apply to unemployment benefits in Washington.
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Charlie Yang
wait so if I already got like $5000 in unemployment this year and didn't have taxes taken out am I screwed??
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Lucas Kowalski
You're not screwed but you should start having taxes withheld now and maybe set aside money for what you owe. $5000 could mean owing around $500-1000 depending on your tax bracket.
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Charlie Yang
ugh ok thanks. gonna change my withholding setting tomorrow
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Aria Washington
The whole tax thing with unemployment is so confusing. During the pandemic they made some benefits tax-free but regular state unemployment was always taxable. People get mixed up because of that.
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Liam O'Reilly
Yeah that's probably where the confusion comes from. Those were special federal programs though, not regular state UI.
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Emma Bianchi
AuthorThat makes sense. I was wondering why I heard different things from different people.
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Chloe Delgado
Pro tip: if you're working part-time while getting partial unemployment, make sure you're withholding from both your job AND your unemployment. Otherwise you might owe a lot.
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Ava Harris
Good point. I'm doing part-time work and getting partial benefits. Need to check my withholding situation.
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Lucas Kowalski
Yes, partial unemployment benefits are taxable just like full benefits. The 10% withholding option applies to partial benefits too.
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Jacob Lee
Does anyone know if you can change the withholding amount? Like if 10% isn't enough can you have more taken out?
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Grace Patel
Washington ESD only offers the standard 10% federal withholding option. If you need more withheld you'd have to make estimated tax payments separately.
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Jacob Lee
Got it, thanks. Might need to do quarterly payments then.
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Emily Thompson
I had to call Washington ESD about tax forms and couldn't get through for days. Finally used that Claimyr service someone mentioned - they got me connected in like 10 minutes. Worth it just to get answers.
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Sophie Hernandez
How much does Claimyr cost? I'm desperate to talk to someone at Washington ESD.
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Emily Thompson
They don't charge upfront or anything sketchy like that. Just helps you get through the phone system. Check out claimyr.com
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Daniela Rossi
The 1099-G usually comes in January. Make sure Washington ESD has your current address or you might not get it. You can also access it online through your SecureAccess Washington account.
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Emma Bianchi
AuthorGood reminder about the address. I moved recently and need to update that.
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Ryan Kim
You can update your address when you file your weekly claim or log into your account separately to change it.
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Zoe Walker
been getting unemployment for 6 months and just found out its taxable... this is gonna hurt at tax time
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Lucas Kowalski
Start having taxes withheld now and maybe set aside some money for what you'll owe. Better late than never!
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Elijah Brown
Same boat here. Wish they made it more obvious that unemployment is taxable income.
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Maria Gonzalez
For those asking about getting through to Washington ESD - I've had success with Claimyr too. They have some kind of system that helps you navigate the phone maze. Saved me hours of calling.
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Natalie Chen
Is it legit though? Sounds too good to be true with how impossible it is to reach Washington ESD normally.
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Maria Gonzalez
Yeah it's real. They have a demo video showing how it works. Nothing shady about it, just helps you get through faster.
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Santiago Martinez
Remember unemployment benefits count toward your AGI so they could affect other tax credits or deductions you qualify for. Something to keep in mind when planning.
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Emma Bianchi
AuthorI hadn't thought about that. Good point about it affecting other tax stuff.
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Samantha Johnson
Yep, could impact things like earned income credit eligibility or education credits depending on your situation.
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Nick Kravitz
If you're self-employed and getting unemployment, make sure you understand how it interacts with your business taxes too. Can get complicated.
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Hannah White
Good point. Self-employment adds another layer of complexity to the tax situation.
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Grace Patel
Definitely recommend talking to a tax professional if you have self-employment income plus unemployment benefits.
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Michael Green
The bottom line is yes, unemployment is taxable income federally. Have the 10% withheld to avoid owing a bunch later. Learned from experience!
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Emma Bianchi
AuthorThanks everyone for all the helpful info. Definitely going to set up withholding on my next weekly claim.
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Mateo Silva
Smart move. Better to get a small refund than owe a big chunk in April.
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