Does being on Washington ESD unemployment affect your tax return?

Yes unemployment benefits are taxable income. Washington ESD sends you a 1099-G form in January showing how much you received. You'll need to report this on your tax return just like regular wages.

i made the mistake of not having taxes taken out when i first filed my claim. ended up owing like $800 when i did my taxes

You can still contact Washington ESD to start having federal taxes withheld from your weekly benefits. They'll take out 10% if you request it. This might help reduce what you owe at tax time. If you're having trouble getting through to them on the phone, I recently discovered this service called Claimyr at claimyr.com that helps people get connected to ESD agents. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works.

The 1099-G form is really important - make sure your address is updated with Washington ESD so you actually receive it. I moved during my unemployment period and almost missed getting mine because it went to my old address.

WAIT A MINUTE! Nobody told me unemployment was taxable when I started collecting! This is such BS. Already struggling financially and now I have to worry about owing taxes too? The system is rigged against working people.

Here's what you need to know: 1) All unemployment benefits are federally taxable 2) Washington state has no income tax so no state taxes owed 3) You can elect 10% federal withholding 4) The 1099-G shows your total benefits and any taxes withheld 5) Report the income on line 7 of Form 1040

Pro tip: if you're going to owe taxes on your unemployment, consider making quarterly estimated tax payments to avoid penalties. You can use Form 1040ES to calculate how much to pay.

another thing is if you paid into unemployment insurance while you were working, you dont get to deduct that on your taxes or anything. its just gone

Does anyone know if the $10,200 unemployment exclusion from 2020 is still a thing? Or was that just for the pandemic year?

if ur really worried about it just save like 20% of each unemployment check in a separate account for taxes. better to have too much saved than not enough

If you're still having issues getting through to Washington ESD to set up tax withholding, that Claimyr service I mentioned earlier really does work. I was skeptical at first but it saved me hours of trying to call. Much easier than sitting on hold forever.

One more thing - if you received unemployment benefits in 2024, make sure you report the correct amount. Sometimes the 1099-G can show overpayments that you had to pay back, so double-check the math.

this whole thing is why i always tell people to have the taxes taken out automatically. yeah you get less money each week but at least you dont get surprised at tax time

Random question but can you deduct job search expenses while on unemployment? Like gas money for interviews or resume printing?

I used turbotax last year and it walked me through the unemployment stuff pretty easily. Just had to enter the info from the 1099-G form.

Bottom line: yes unemployment affects your taxes, but it's manageable if you plan for it. Either elect withholding or save money throughout the year. And if you need to talk to ESD about withholding options, services like Claimyr can help you actually get through to a real person instead of dealing with busy signals all day.

just remember to keep good records of everything. dates you received payments, any weeks you didnt claim, any work you did while collecting. makes tax time way easier

One last tip - if you're married and file jointly, the unemployment income could push you into a higher tax bracket. Something to consider when planning.

thanks op for asking this question, i was wondering the same thing but felt dumb asking. glad to see im not the only one who didnt know unemployment was taxable