Does Washington ESD unemployment count as income for FAFSA - confused about reporting

Yes, unemployment benefits from Washington ESD definitely count as income on your FAFSA. It's considered taxable income by the IRS, so you'll report it in the income section, not the untaxed income section. You should have received a 1099-G form from Washington ESD showing the total amount.

I had the same question last year when I was on unemployment. Washington ESD benefits are definitely reportable income for FAFSA purposes. The key thing is that it goes in the regular income section since it's taxable, not in the untaxed benefits section. Make sure you keep all your Washington ESD documentation.

Wait, I thought unemployment wasn't taxed anymore? I remember during COVID they said something about the first $10,200 being tax-free. Does that still apply?

I've been struggling with Washington ESD for months trying to get through to someone about my claim status. If you need to talk to them about getting documentation for your FAFSA, good luck getting through on the phone. I found this service called Claimyr that actually got me connected to an agent - you can check it out at claimyr.com. They have a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works.

ugh the whole FAFSA process is so confusing. I'm dealing with unemployment income too and I have no idea what half these questions mean. Why can't they just make it simple?

I work in financial aid and can confirm that ALL unemployment benefits count as income for FAFSA purposes. This includes regular Washington ESD unemployment, any extended benefits, and even standby benefits if you received those. The key is to report the total amount shown on your 1099-G form.

Does anyone know if Washington ESD sends out the 1099-G forms automatically or do you have to request them? I never got one and I definitely received unemployment last year.

This is exactly why I hate dealing with government paperwork. Between Washington ESD and FAFSA I feel like I need a degree just to fill out forms correctly. At least unemployment is straightforward income reporting unlike some of the other weird categories.

Pro tip: if you received unemployment benefits across two tax years, make sure you're reporting the right amounts for the right year on your FAFSA. I made that mistake and had to correct it later.

I had to use Claimyr too when I couldn't get through to Washington ESD about my benefit verification letter. It was actually pretty quick once I got connected to an agent. Definitely beats the endless hold times.

For anyone still confused about this - unemployment benefits are treated just like wages for FAFSA purposes. If you made $8,200 in unemployment, that's the same as if you made $8,200 at a regular job. It all goes in the income section.

I remember when I was on unemployment and filling out my FAFSA, I was so stressed about getting it wrong. Turns out it's pretty straightforward once you understand that unemployment = regular income for their purposes.

One thing to watch out for - if you had taxes withheld from your Washington ESD payments, don't forget to report the gross amount on FAFSA, not the net amount you actually received. The 1099-G will show the gross amount.

does anyone know if the special circumstance thing applies if you're no longer on unemployment? Like if I was unemployed last year but now have a job, can I explain that to the financial aid office?

I tried using that Claimyr service someone mentioned earlier and it actually worked really well. Got connected to a Washington ESD agent in about 10 minutes instead of the usual 2+ hour wait times. Definitely worth it if you need to sort out documentation issues.

This whole thread has been super helpful. I was totally confused about unemployment and FAFSA but now I feel like I can actually fill out the form correctly. Thanks everyone!