Does unemployment mess up your taxes? Washington ESD questions

Oh no, I was afraid of that. Do you know roughly what percentage I should expect to owe?

It depends on your total income and tax bracket, but unemployment is taxed as regular income. So if you're in the 22% bracket, that's what you'd owe on the unemployment portion.

Yikes! How much did you collect in unemployment to owe that much?

about 18k total, should have had them take out the taxes but hindsight is 20/20

That's really helpful! I'll log in and set up withholding right away. Better late than never I guess.

Exactly! And keep good records of your job search activities since those expenses might be deductible.

Never heard of Claimyr but getting hung up on by Washington ESD is so relatable. Does it actually work?

Yeah, they basically call for you and get you connected to an actual agent. Check out claimyr.com - I was skeptical at first too but it worked perfectly.

Good to know this exists! I might need it if I have issues getting my 1099-G.

With just $15k income, you'd probably be in the 12% tax bracket. So roughly $1800 in federal taxes, but you might get some of that back depending on deductions and credits.

Ugh that's still a lot of money I don't have right now

totally agree, they barely mention it when you file your initial claim

It is mentioned in the initial paperwork, but I agree it should be more prominent since so many people get surprised by it.

Good move! That should help reduce what you'll owe next year if you're still collecting benefits.

Smart thinking ahead. I should probably do the same thing.

Job search expenses used to be deductible but the Tax Cuts and Jobs Act eliminated most of those deductions for regular employees. You'd need to itemize and meet pretty high thresholds now.

Damn, that sucks. So probably not worth it unless I have major expenses?

Same situation as me last year. If you can't get through on the phone, try that Claimyr service I mentioned earlier. They got me connected to someone who could resend my 1099-G electronically.

I might have to try that if it doesn't show up soon. I need to file my taxes.

Yeah I learned that the hard way. The 1099-G shows everything you got from Washington ESD for the year.

Standby benefits are taxable too, just so you know. Same rules apply whether it's regular UI or standby.

Good to know, thanks! I'll make sure to have taxes withheld if I switch to regular benefits.

VITA (Volunteer Income Tax Assistance) programs help with unemployment benefits. Check with your local library or community center - many offer free tax prep for people with lower incomes.

Perfect, I'll look into that. Don't want to pay for a tax preparer if I don't have to.

Yeah that was nice while it lasted. Made things so much simpler.

You should have paid taxes on 2023 unemployment when you filed your 2023 tax return. The unemployment you received in 2024 will be taxed on your 2024 return.

oh shoot i think i messed up my 2023 taxes then

That's reassuring to know. I was imagining worst case scenarios about what happens if you can't pay.

The IRS would rather get paid slowly than not at all. Just don't ignore it if you owe money.

Knowledge is power! Better to know now and plan ahead than get surprised at tax time.

Yes, education credits can definitely help reduce your overall tax liability. If you took classes while unemployed, definitely look into claiming those credits.

Great! I did take some online courses through WorkSource. I'll make sure to get the paperwork for those.

Yeah they're good for any situation where you need to actually talk to someone at Washington ESD. The phone system is just impossible otherwise.

Same here! This thread has been a real eye-opener. Better to be prepared than surprised.

Excellent advice. Always better to have records you don't need than need records you don't have.

Good point. I've been keeping a job search log for Washington ESD anyway, so I'll make sure to save those records for tax purposes too.