< Back to Washington Unemployment

Emma Morales

Does Washington ESD unemployment count as taxable income for 2025?

I'm getting ready to do my taxes and realized I need to figure out if my unemployment benefits from Washington ESD count as taxable income. I received about $8,200 in UI benefits last year after getting laid off from my warehouse job. Do I need to report this on my tax return? I didn't have any taxes withheld from my weekly payments because I needed every dollar I could get. Now I'm worried I might owe a bunch of money come tax time. Has anyone dealt with this before?

Yes, unemployment benefits are definitely taxable income at the federal level. Washington state doesn't have income tax so you don't worry about that part. You should have received a 1099-G form from Washington ESD showing how much you received in benefits. If you didn't get one, you can download it from your SecureAccess Washington account.

0 coins

Thanks! I'll check my SAW account for the 1099-G. Do you know if there's a way to see how much I might owe?

0 coins

You can use any online tax calculator or the IRS withholding calculator to get a rough estimate. Just plug in your other income plus the $8,200 in unemployment.

0 coins

I made the same mistake last year - didn't withhold taxes from my UI payments and ended up owing about $1,800. The good news is you can set up a payment plan with the IRS if you can't pay it all at once.

0 coins

Ouch, that's a lot. Was it hard to set up the payment plan?

0 coins

Not too bad, you can do it online through the IRS website. They charge a small setup fee but it's better than getting hit with penalties.

0 coins

Just a heads up - when you're on unemployment in the future, you can choose to have taxes withheld from your weekly claims through Washington ESD. It's 10% federal withholding. I learned this the hard way too and now I always elect to have it taken out.

0 coins

That's good to know for next time. Where do you make that election?

0 coins

When you file your weekly claim on the Washington ESD website, there's an option to withhold taxes. You can also change it by calling their tax withholding line.

0 coins

I tried calling that line last month and couldn't get through. The hold times are ridiculous with Washington ESD phone system.

0 coins

If you're having trouble getting through to Washington ESD about tax stuff or any other issues, I found this service called Claimyr that helped me get connected to an actual agent. They have this system that calls for you and gets you through the phone maze. Check out claimyr.com - there's even a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works.

0 coins

Is that legit? Sounds too good to be true with how impossible it is to reach Washington ESD.

0 coins

I was skeptical too but it actually worked. Saved me hours of calling and getting disconnected. Worth trying if you need to talk to someone at Washington ESD.

0 coins

How much does something like that cost? I might try it if it's reasonable.

0 coins

Don't forget that if you're married filing jointly, your spouse's income affects your tax bracket too. My husband and I got hit harder than expected because the unemployment pushed us into a higher bracket.

0 coins

I'm single so that shouldn't be an issue for me, but good point for others reading this.

0 coins

Yeah, just wanted to mention it since a lot of people don't think about the bracket impact.

0 coins

The 1099-G from Washington ESD should be available by the end of January. Mine usually shows up in my SAW account around January 31st. Make sure to download it because they don't mail paper copies automatically anymore.

0 coins

Good to know the timing. I'll keep checking my account.

0 coins

You can also request a paper copy if you need one, but there might be a small fee.

0 coins

This is why the unemployment system is broken. They should automatically withhold taxes like regular payroll does. It's ridiculous that people get surprised by huge tax bills.

0 coins

I agree it should be the default, but at least Washington ESD gives you the option to withhold. Some people prefer to get the full amount and handle taxes themselves.

0 coins

Fair point, but most people don't know about the option until it's too late.

0 coins

I used TurboTax last year and it automatically imported my 1099-G from Washington ESD. Made the whole process pretty easy once I had the form.

0 coins

That's helpful. I usually do my own taxes so I'll look into tax software that can import the forms.

0 coins

Most of the major tax programs can import government forms now. Really saves time.

0 coins

Just wanted to add that if you received unemployment in 2024, you might qualify for the Earned Income Tax Credit even without working much. The unemployment doesn't count as earned income for EITC purposes, but if you had any W-2 wages, you might still qualify.

0 coins

I worked for about 3 months before getting laid off, so I did have some W-2 income. I'll look into the EITC.

0 coins

Definitely worth checking. Even a small amount of earned income can qualify you for some credit.

0 coins

Another thing to keep in mind is that if you paid any union dues or job search expenses while unemployed, those might be deductible. Keep your receipts for things like resume services, interview travel, etc.

0 coins

I didn't think about job search expenses being deductible. I did spend money on gas driving to interviews.

0 coins

Yeah, mileage for job interviews is deductible. Keep track of those miles!

0 coins

If you end up owing money and can't pay right away, don't ignore it. The IRS is pretty reasonable about payment plans, but they get nasty if you just don't file or pay anything.

0 coins

Good advice. I'll make sure to file on time even if I can't pay everything immediately.

0 coins

The failure to file penalty is way worse than the failure to pay penalty, so definitely file on time.

0 coins

I had a similar situation and ended up using Claimyr to get through to Washington ESD to ask about my 1099-G form. The rep was able to tell me exactly when it would be available and helped me understand the tax withholding options for future claims. Really saved me a lot of hassle.

0 coins

How long did it take them to connect you to Washington ESD?

0 coins

About 20 minutes total. Way better than the 2 hours I spent trying to call myself the day before.

0 coins

For what it's worth, $8,200 in unemployment probably won't result in a huge tax bill if you don't have a lot of other income. Depending on your situation, you might only owe a few hundred dollars.

0 coins

That makes me feel a bit better. I was worried it might be over $1,000.

0 coins

It really depends on your total income and filing status. Run the numbers through a tax calculator to get a better estimate.

0 coins

Don't forget that some states had special rules during COVID where unemployment wasn't taxed, but that was only for 2020 and maybe part of 2021. Regular unemployment has always been taxable federally.

0 coins

Yeah, I remember hearing about that but knew it didn't apply to regular unemployment in recent years.

0 coins

Right, that was just for the pandemic unemployment programs like PUA and PEUC.

0 coins

One more tip - if you're doing your taxes yourself, make sure you report the unemployment on the right line. It goes on the 1040 as 'other income' along with your W-2 wages.

0 coins

Thanks for the specific form info. I'll make sure I put it in the right place.

0 coins

Actually, unemployment goes on line 7 of the 1040 form now, not as 'other income'. Just want to make sure you get that right.

0 coins

I used Claimyr last year when I had questions about my unemployment taxes and they were super helpful. The Washington ESD agent explained everything clearly and even helped me understand how to set up withholding for any future claims. Definitely recommend it if you need to talk to someone at Washington ESD about tax-related stuff.

0 coins

Seems like a lot of people have had good experiences with that service. I might give it a try if I run into issues.

0 coins

I've been seeing Claimyr mentioned a lot lately. Might be worth trying since calling Washington ESD directly is such a nightmare.

0 coins

Just make sure you have all your documentation ready when you file. Besides the 1099-G from Washington ESD, you'll need any W-2s from jobs you had during the year. Keep copies of everything for your records.

0 coins

Good reminder. I have my W-2 from my last job and I'll download the 1099-G once it's available.

0 coins

Yeah, the IRS can ask for documentation years later, so definitely keep copies.

0 coins

Bottom line is yes, unemployment is taxable, but it's not the end of the world. Just plan for it and you'll be fine. Good luck with your taxes!

0 coins

Thanks everyone for all the helpful advice. I feel much more prepared to handle this now.

0 coins

No problem! We've all been there with unemployment tax questions.

0 coins

Related Posts

Washington Unemployment Phone Number: Live Human Help
Can you file taxes with unemployment benefits from Washington ESD?
Is unemployment taxable in Washington - confused about tax filing
Do you file unemployment on taxes - Washington ESD benefits taxable?
Do you have to put unemployment on your taxes - Washington ESD questions
Do I have to file taxes on unemployment benefits from Washington ESD?
How does unemployment tax work with Washington ESD benefits?
Does Washington ESD unemployment count as adjusted gross income for taxes?
Washington ESD - are unemployment checks taxed when filing returns?
Do you pay taxes on unemployment benefits in Washington - confused about tax implications
Do you have to file taxes for unemployment benefits from Washington ESD?

Washington Unemployment AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
20,087 users helped today