Do you pay FICA on unemployment income from Washington ESD?

That's a relief! So I just need to worry about the regular income tax then. Thanks for clarifying that.

Wait, are you sure about that? I thought all income was subject to FICA.

Oh wow, I forgot Washington doesn't have state income tax! That does make things simpler.

Lucky you living in Washington! I'm in another state and got hit with both federal and state taxes on my unemployment.

Interesting, I've never heard of that service. Did it actually work for getting through to Washington ESD?

Yeah, it was way easier than trying to call on my own. The agent was able to answer my tax questions and also helped me understand some other stuff about my claim.

How much does something like that cost though? Seems like it might be expensive.

FICA stands for Federal Insurance Contributions Act. It's the Social Security and Medicare taxes that get taken out of your paycheck when you're working - usually about 7.65% total.

Ah okay, so it's those taxes that go toward Social Security and Medicare. Makes sense why unemployment wouldn't be subject to that.

Right, and your employer matches that 7.65% when you're working. Since you're not employed when getting unemployment, there's no employer to match anything.

I did get that form! It showed the $8,500 I mentioned. Good to know I need to keep it for my taxes.

What if you didn't get a 1099-G? I never received mine and I'm worried about filing my taxes.

You can usually download it from your Washington ESD account online, or call them to request a copy. Don't file without it.

Tell me about it. I've been putting off doing my taxes because I'm so confused about all this unemployment stuff.

The good news is unemployment tax rules are actually pretty straightforward once you understand them. Just treat it like regular income for federal tax purposes, no FICA.

I think I did have some taxes withheld actually. I'll have to check my 1099-G to see if that's shown correctly.

I wish I had done that. Now I owe a bunch of money because I didn't have anything withheld.

Yeah, it's always better to have some withheld if you can afford the smaller weekly payments. Avoids a big surprise at tax time.

Exactly right. Federal income tax yes, FICA taxes no.

That's my understanding too based on what everyone has said here. Makes sense to me.

That's the second mention of Claimyr in this thread. Sounds like it might be worth looking into if I have more questions.

I'm skeptical of any service that charges to help you contact government agencies. Seems like something that should be free.

I get the skepticism, but honestly the time I saved was worth it. Spent weeks trying to get through on my own with no luck.

The unemployment benefits themselves are still not subject to FICA regardless of your other income. But your freelance income would be subject to self-employment tax.

Okay, so I treat the unemployment and freelance income separately for tax purposes. Got it.

Same here! I'm so glad I asked before just guessing on my taxes.

Always better to ask questions than to guess when it comes to taxes. The IRS doesn't like mistakes!

Yes, IRS Publication 15 specifically states that unemployment compensation is not subject to FICA taxes. You can also check IRS Publication 525 for more details on taxable vs non-taxable income.

Thanks for the specific publication numbers. I'll look those up to double-check for myself.

Good point. I did find a new job recently, so I should probably update my W-4 to have a bit more withheld.

Congratulations on finding a new job! That's great news.

Agreed! Sometimes asking real people is way more helpful than trying to decode government websites.

Forums like this are invaluable for getting clear answers to confusing questions.

It's reassuring to hear from someone who does this professionally. Thanks for confirming what everyone else has said.

Do you see a lot of people make mistakes with unemployment taxes?

More often people forget to report unemployment income at all, or they're surprised by the tax liability. The FICA confusion is less common but it does come up.

That would be really helpful. Even just a simple fact sheet about tax implications would make a big difference.

They probably figure it's not their job to give tax advice, but you're right that some basic info would be useful.

That's a really clear way to think about it. If it's not wages from a job, it's not subject to FICA. Simple!

Exactly. It's actually pretty logical once you think about it that way.

Definitely! I'm so glad I asked here instead of just guessing. Everyone has been incredibly helpful.

Agreed, this is exactly the kind of discussion that makes forums valuable. Real people helping real people with practical questions.

Thanks for the reminder about that. I bookmarked their site in case I need to contact Washington ESD again in the future.

Good to know there are options for getting through to them. The regular phone lines are impossible most of the time.

Glad this helped you too! It's amazing how many people have the same questions about unemployment taxes.

That's the beauty of forums - one person asks a question and it helps tons of other people with the same issue.