Do you pay taxes on unemployment benefits from Washington ESD?

I haven't gotten any 1099-G form yet. Should I be worried? Where would Washington ESD send it?

They usually mail it to your address on file or you can access it through your eServices account on the Washington ESD website. Check there first.

Wait, you can set up withholding? How do I do that for future payments?

Log into your eServices account and look for the tax withholding option when you file your weekly claim. You can start having it withheld going forward.

That's a lot of taxes! I received about $18,000 total so I'm probably looking at a similar amount owed.

If you need help dealing with Washington ESD about tax forms or setting up withholding, I used a service called Claimyr that helped me get through to an actual agent. They have a website at claimyr.com and there's a demo video at https://youtu.be/7DieNd3C7zQ. Way easier than trying to call the regular number.

I agree they should be clearer about it. The information is in the handbook they give you but most people don't read through all of that.

yeah right like anyone reads that whole thing when they're stressed about losing their job

That's helpful to know. I didn't work much last year so my total income was mostly just the unemployment benefits.

If unemployment was your only income you might qualify for earned income credit or other credits that could reduce what you owe. Definitely worth talking to a tax preparer.

10% might not be enough depending on your tax bracket. If you're in the 22% bracket you'll still owe more at tax time.

Ugh, I was hoping 10% would cover it. I guess I'll have to save up for tax season anyway.

Good advice. I'm going to log in and set that up right after I file my claim this week.

Also keep track of any job search expenses - those might be deductible on your taxes. Gas for interviews, resume printing, etc.

Bad idea. The IRS gets a copy of your 1099-G from Washington ESD so they know exactly how much you received. You'll get audited and owe penalties and interest.

Yeah that's what I figured. My 'friend' will definitely report it then lol

If you do need to call Washington ESD for any reason, that Claimyr service I mentioned earlier really works. They handle all the waiting and get you connected to an actual person. Saved me hours of frustration.

I might try that if I have issues this year. The regular phone system is terrible.

Thankfully I only dealt with Washington ESD so just one form to worry about.

Same situation here with California and Washington. Make sure to report all of it on your federal return.

I'll check online this week. Thanks for the tip about the January 31st date.

Also make sure your address is updated in your eServices account if you moved during the year. Otherwise the paper copy might go to the wrong address.

20% seems like a lot but I guess it's better to be safe. I'll start saving up now.

It might be less depending on your other income and deductions, but 20% is a good rule of thumb to avoid surprises.

I've never done estimated payments before. Is it complicated?

Not really, you just send in payments quarterly based on what you think you'll owe. The IRS website has calculators to help figure out the amount.

That's good to know. I didn't have any withheld but I'll remember that for next year if I'm still collecting.

Yeah the 1099-G shows total benefits in one box and federal taxes withheld in another box. Pretty straightforward.

Perfect summary, thanks! I feel much better understanding what to expect now.

Agreed, this thread was really helpful. I was in the same boat as OP and now I know what to do.