ESD 1099-G shows higher amount than I received - possible tax refund?

This is totally normal! The 10% withholding is often more than what you actually owe on unemployment income, especially if you were only collecting for part of the year. When you file your taxes, all your income sources (including any W-2s) get calculated together, and your actual tax liability is determined based on your total situation, deductions, credits, etc. If the withholding exceeded what you actually owe, you'll get a refund. Just file your taxes normally using the information from your 1099-G. No need to contact ESD - they did exactly what you asked them to do by withholding 10%. The refund comes from the IRS, not from ESD.

ya i got a refund last year too! the system withholds at a flat rate but most people end up in lower tax brackets when everything is calculated together. just file like normal and enjoy the extra $$!

Be very careful here - double check that 1099-G against what you actually received! I had an issue last year where ESD reported a higher amount than I actually received due to an overpayment that was later adjusted. The 1099-G didn't reflect the adjustment and I almost paid taxes on money I never got! Log into your ESD account and download all your payment history. Add up what you actually received and compare it to the 1099-G. If there's a discrepancy, you need to request a corrected 1099-G from ESD before filing. Also, the withholding amount sounds about right if your benefits were around $18,750 (10% would be $1,875). But definitely verify everything carefully.

Another thing to consider is if you had significant periods without income before or after your unemployment period. If you were only earning for part of the year (either through work or unemployment), your effective tax rate might be lower than the 10% that was withheld. The tax withholding on unemployment benefits is a flat percentage, but our tax system is progressive, meaning different portions of your income are taxed at different rates. The standard deduction alone for 2024 is $14,600 for single filers, so a portion of your income isn't even taxed. And yes, getting a refund from overwithholding on unemployment is completely normal.

Has anyone tried getting through to ESD about tax questions? I've been trying to get clarification on my 1099-G for over a week now with no luck. Keep getting the "high call volume" message and disconnected. Super frustrating!

Wait so if I didn't select any withholding when I first applied for benefits, can I still change that now?? I've been on unemployment since November and am worried about owing a bunch when tax time comes!

not to go off topic but anyone know if we can deduct job search expenses when on unemployment? i spent a ton on gas driving to interviews last year

Just to clarify for everyone in this thread: the unemployment tax withholding system is pretty simple but often misunderstood. ESD only offers a flat 10% federal withholding option - nothing more nuanced. This is often more than people actually owe on their unemployment benefits when all factors are considered in their tax return. Reason: The U.S. tax system has built-in provisions like the standard deduction ($14,600 for single filers in 2024) and lower tax brackets on initial income. So while 10% is withheld on ALL your unemployment benefits, your effective tax rate might actually be lower when filing. This is why many people receive refunds after filing taxes that include unemployment benefits. It's completely normal and part of how our tax system works.