Does Washington ESD unemployment take out taxes automatically or do I need to handle it myself?

Thanks! I'll check my account right now. I don't remember selecting anything about taxes when I filed.

If you didn't select withholding, you'll need to set aside money for taxes yourself. UI benefits are fully taxable as income.

Yikes! That's exactly what I'm trying to avoid. Definitely going to set up withholding now.

Same thing happened to me. Now I always have the 10% taken out automatically.

I had the same problem until I found Claimyr. It's a service that helps you actually get through to Washington ESD agents by phone. Check out claimyr.com - they have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. I was able to talk to someone about my tax withholding in like 20 minutes.

Perfect! Found it and turned on the 10% withholding. Thanks for the step-by-step directions.

This is so helpful! I had no idea you could change it online.

Good point. I'll probably set aside a little extra just to be safe.

Yeah, the 10% is usually close but not always exact. Better to be prepared.

When do they usually send those out? This is my first time dealing with unemployment taxes.

Usually by the end of January. You can also access it online through your Washington ESD account.

If you're having 10% withheld, you probably don't need to make quarterly payments. But if you're not having taxes withheld and you expect to owe more than $1000, you might want to consider it.

Talk to a tax professional if you're unsure. Everyone's situation is different.

Glad it worked for you! I've recommended it to several people now and everyone's had success getting through.

Maybe I should try that too. I have other questions about my claim that I can't figure out online.

Exactly what I needed to hear. Thanks everyone for all the help!

This thread saved me from making a big mistake. Setting up withholding now.

Yes, you can make quarterly estimated tax payments to the IRS. Check their website for forms and deadlines.

You can also increase your withholding percentage temporarily to catch up if you're still receiving benefits.

Just federal. Washington doesn't have state income tax so you don't need to worry about that part.

oh right, forgot about that! Thanks

Not screwed, but you'll need to plan ahead. Set up withholding now for future payments and start setting aside money for what you'll owe on the benefits you already received.

Same thing happened to me last year. I owed about $2000 but was able to set up a payment plan with the IRS.

Good advice! I'm going to start a spreadsheet to track everything.

You can also see your payment history in your Washington ESD account anytime.

That's exactly why I started using Claimyr. Saves so much time and frustration trying to get through to an actual person at Washington ESD.

Yeah, I wasted so many hours before finding that service. Now I can actually get my questions answered.

Same here! This thread has been incredibly helpful.

Happy to help! Understanding the tax implications early can save you a lot of stress later.

Good to know! I was worried about what would happen if I couldn't pay everything immediately.

Yes, they're usually pretty reasonable about setting up payment plans for people who are willing to pay.

Totally agree! I had no idea about any of this until I asked here.

The whole unemployment system could use better communication about tax responsibilities.

Absolutely! I'm so glad I asked about this early instead of waiting.

This thread probably saved a lot of people from some nasty tax surprises.

Thanks for all the advice everyone! I feel much more confident about handling the tax side of unemployment now.

Glad we could help! Good luck with everything.