Do you pay taxes on Washington ESD unemployment income - confused about tax liability
I've been receiving unemployment benefits from Washington ESD for about 6 months now and just realized I might need to pay taxes on this income. Nobody told me about this when I filed my initial claim! I've been getting around $650 per week and I'm worried I'm going to owe a huge amount when I file my taxes. Does Washington ESD automatically withhold taxes or do I need to handle this myself? I'm really stressed about this because I've been using all the money just to survive.
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Chloe Taylor
Yes, unemployment benefits are considered taxable income by both federal and state governments. Washington ESD should have given you the option to have taxes withheld when you first filed your claim, but many people skip this step without realizing the consequences later.
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Omar Hassan
•I don't remember seeing that option anywhere! Does this mean I owe taxes on the full $650 per week I've been getting?
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Chloe Taylor
•You'll owe federal income tax on the full amount, but Washington state doesn't have income tax so you're good there. The federal rate depends on your total income for the year.
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ShadowHunter
omg same situation here!! been getting benefits since march and had no idea about taxes. this is going to be a disaster when tax season comes
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Diego Ramirez
•Don't panic yet. You can still set up tax withholding through your Washington ESD account for future payments. Log into your SecureAccess Washington portal and look for tax withholding options under payment preferences.
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ShadowHunter
•thank you! i'll try to log in tonight and figure out how to set that up
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Anastasia Sokolov
I had this exact problem last year and ended up owing $2,800 in federal taxes on my unemployment. What saved me was using Claimyr to actually get through to a Washington ESD representative who explained all my options. You can check out their demo at https://youtu.be/7DieNd3C7zQ - they help you get through the phone system that's always busy. The agent was able to walk me through setting up tax withholding and explained that I could have 10% federal taxes taken out automatically.
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Omar Hassan
•How much does claimyr cost? I'm already struggling financially and can't afford expensive services right now.
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Anastasia Sokolov
•It's way cheaper than owing thousands in taxes! Check claimyr.com for details. For me it was worth it just to finally talk to someone who could explain everything properly.
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Sean O'Connor
•I've never heard of this service before. Does it actually work or is it just another scam targeting unemployed people?
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Zara Ahmed
The tax withholding is definitely optional but HIGHLY recommended. I've been doing taxes for 15 years and see this problem constantly. Washington ESD will withhold 10% for federal taxes if you request it, which usually covers most people's tax liability on unemployment income.
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Omar Hassan
•Is 10% enough though? I made about $45,000 at my job before getting laid off, so I'm not sure what tax bracket I'm in now.
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Zara Ahmed
•For most people 10% is close, but if you had higher income earlier in the year you might need to set aside additional money. Your total income for 2025 will determine your actual tax rate.
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Luca Conti
Wait, I thought unemployment wasn't taxable because it's government assistance? This doesn't make any sense to me.
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Chloe Taylor
•That's a common misconception. Unemployment insurance benefits are taxable income, unlike some other government assistance programs like SNAP or TANF.
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Luca Conti
•Well that's just great. Another way the system screws over people who are already struggling.
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Nia Johnson
You should receive a 1099-G form from Washington ESD at the end of the year showing exactly how much you received in benefits. Make sure your address is updated in your account so you don't miss this important tax document.
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Omar Hassan
•When do they usually send those forms out? I moved recently and need to update my address.
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Nia Johnson
•They're required to send 1099-G forms by January 31st. You can update your address through the SecureAccess Washington portal or by calling Washington ESD directly.
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CyberNinja
I learned this the hard way last year. Owed $1,200 in federal taxes and had no money saved up for it. Now I always tell people to have taxes withheld automatically - it's so much easier than trying to come up with a lump sum later.
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Omar Hassan
•Did you have to pay penalties for not paying quarterly taxes? I'm worried about that too.
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CyberNinja
•I didn't have penalties because my total tax liability was under a certain threshold, but it's definitely something to be aware of if you're receiving benefits for most of the year.
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Mateo Lopez
The Washington ESD website has information about this but it's buried pretty deep. I only found it after searching for like 20 minutes. They really should make this more obvious when people first apply for benefits.
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Aisha Abdullah
•Agreed! I think they mention it briefly during the initial application but it's easy to miss among all the other information they throw at you.
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Omar Hassan
•Exactly! There's so much paperwork and information when you first file that important details like this get lost.
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Ethan Davis
Pro tip: if you can't afford to have taxes withheld right now, at least start setting aside 10-15% of each payment in a separate savings account. That way you won't be hit with a huge surprise bill next April.
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Omar Hassan
•That's good advice. I can probably manage to save $65-70 from each payment if I really budget carefully.
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Yuki Tanaka
•Even $50 per week would help. Anything is better than owing thousands with no money saved up to pay it.
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Carmen Ortiz
I used Claimyr last month to get through to Washington ESD about a different issue and ended up asking about tax withholding while I had the agent on the phone. She set it up for me right away and explained that I can change the withholding amount anytime if needed. Worth checking out claimyr.com if you're having trouble reaching someone at Washington ESD.
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Sean O'Connor
•Okay I looked at that video demo and it seems legit. Might be worth trying since I can never get through on the phone normally.
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Omar Hassan
•I'm definitely going to try calling first on my own, but good to know there are options if I can't get through.
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MidnightRider
Just want to add that if you're married, having taxes withheld becomes even more important because it affects your joint filing status and could push you into a higher tax bracket.
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Andre Laurent
•Yes! My spouse is still working and we got hit hard last year because we didn't account for the unemployment income properly.
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Omar Hassan
•I'm single so hopefully that makes things a bit simpler for me.
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Zoe Papadopoulos
Does anyone know if the job search requirements affect your tax liability at all? I've been doing my weekly job contacts but wondering if there are any tax implications there too.
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Chloe Taylor
•The job search activities themselves don't affect your taxes, but any income you earn from work while collecting partial unemployment definitely does.
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Zoe Papadopoulos
•Good to know, thanks! I haven't found any part-time work yet but want to be prepared.
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Jamal Washington
I wish Washington ESD would just automatically withhold taxes like they do with regular paychecks. Having to opt-in seems backwards when most people don't realize they need to do it.
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Mei Wong
•I think they do it that way because some people might be in lower income situations where they won't owe much in taxes and would rather have the full amount each week.
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Jamal Washington
•That makes sense I guess, but they should at least make it more prominent during the application process.
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Liam Fitzgerald
Another thing to consider is that if you receive unemployment benefits and then find a job later in the year, your total income might be higher than expected, which could affect your tax bracket. It's worth talking to a tax professional if your situation is complicated.
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Omar Hassan
•I'm hoping to find work soon so this is definitely something I'll need to keep in mind. Thanks for pointing that out.
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Liam Fitzgerald
•No problem! Just don't want you to get caught off guard if you do land a good job later this year.
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PixelWarrior
For what it's worth, I tried using that Claimyr service mentioned earlier and it actually worked great. Got through to Washington ESD in about 10 minutes instead of the usual hours of busy signals. The agent helped me set up tax withholding and answered a bunch of other questions I had about my claim status.
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Omar Hassan
•That's really encouraging to hear! I think I'm going to give it a try if I can't get through on my own in the next few days.
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Amara Adebayo
•Same here, I've been trying to call Washington ESD for weeks about various issues and never get through. This might be the solution I need.
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Giovanni Rossi
One more tip - if you do end up owing taxes and can't pay the full amount, the IRS has payment plan options available. Don't just ignore it if you can't pay everything at once.
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Omar Hassan
•Good to know there are options if I do end up owing more than I can afford. Hopefully I can get the withholding set up soon to avoid that situation.
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Fatima Al-Mansour
•Definitely get the withholding set up ASAP. Even if you've already received several months of benefits without withholding, starting now will help reduce what you owe later.
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