Does Washington ESD unemployment count as adjusted gross income for taxes?

Yes, unemployment benefits are definitely taxable income and need to be included in your adjusted gross income (AGI). You should have received a 1099-G form from Washington ESD showing the total amount you received.

Unemployment is 100% taxable at the federal level and counts toward your AGI. Washington state doesn't have income tax so you don't worry about state taxes on it. But federally you'll owe income tax on every dollar you received.

Had the same issue last year trying to get my 1099-G from Washington ESD. Their phone lines were constantly busy and I couldn't get through to anyone for weeks. Finally used this service called Claimyr (claimyr.com) that helps you actually reach ESD agents. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works. Got through to someone within a day and they were able to help me get my tax documents sorted out.

wait so unemployment increases your income for tax purposes? that seems backwards since you're unemployed and struggling financially

You can find your 1099-G by logging into your account on the Washington ESD website. Go to the tax documents section and it should be there if it's been issued. Mine was available online before I got the paper copy in the mail.

The amount on your 1099-G goes on line 7 of your Form 1040. It gets added to any other income you had during the year to calculate your total AGI. If you had other income plus unemployment, you might end up in a higher tax bracket than expected.

I'm in the same boat - got unemployment benefits but didn't have taxes withheld. Now I'm worried I'm going to owe a huge amount. Has anyone calculated approximately how much extra you end up owing?

This is exactly why the unemployment system is broken. They give you money when you're struggling then tax you on it later. Makes no sense.

Pro tip: if you're filing your own taxes, make sure you're using the correct amount from your 1099-G. Sometimes there are adjustments or overpayments that affect the taxable amount. Don't just copy the gross amount without checking.

I tried calling Washington ESD last month to get clarification on my 1099-G because the amount seemed wrong. After getting disconnected probably 50 times, someone told me about Claimyr. Used their service and actually got through to a real person who could explain the discrepancy. Turns out there was an overpayment adjustment that wasn't showing up correctly online.

Just want to add that if you received unemployment benefits and didn't have taxes withheld, you might want to make estimated tax payments for this year if you're still unemployed. Otherwise you could end up with the same problem next year.

does anyone know if the $10,200 unemployment tax exclusion from 2021 is still a thing? i keep seeing conflicting information online

If you're doing your taxes yourself, TurboTax and other software will automatically include the 1099-G amount in your AGI calculation. Just make sure you enter it in the unemployment income section, not as miscellaneous income.

Just a reminder that even though Washington state doesn't tax unemployment benefits, you still need to report them on your federal return. Don't make the mistake of thinking you don't owe anything just because there's no state income tax here.

If your 1099-G shows a different amount than what you think you received, don't panic. Sometimes there are timing differences between when benefits were paid versus when they were processed for tax purposes. The 1099-G amount is what you should use for your tax return.

One more thing to consider - if you received unemployment benefits and also had a job during the year, your employer might not have withheld enough taxes because they didn't know about your unemployment income. You might want to adjust your withholding going forward.

For anyone still trying to reach Washington ESD about tax documents or other issues, I had good luck with that Claimyr service someone mentioned earlier. Their system helped me get through when I needed to resolve a question about my benefit year earnings that was affecting my tax calculation. Much easier than the endless busy signals.

Bottom line: yes, unemployment counts as AGI and you'll owe federal income tax on it. Get your 1099-G, report the amount on your tax return, and if you didn't have taxes withheld, be prepared to owe some money. It's just part of how the system works unfortunately.