Filing taxes without 1099-G when ESD hasn't paid benefits yet - what's the right move?
Hey everyone, I'm in a weird situation with my taxes and ESD. I applied for unemployment in mid-December (about 6 weeks ago), but my claim is still stuck in processing and I haven't received a single payment yet. Tax season is here and I'm wondering - should I wait to file my taxes until I get a 1099-G from ESD, or is it okay to file now since I technically didn't receive any unemployment income in 2024? I'm worried about having to amend later if benefits finally come through, but also don't want to delay my refund. Has anyone dealt with this before? Would really appreciate some guidance!
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Aisha Jackson
You should file your taxes based on income you actually received in 2024, not what you applied for. If you didn't receive any unemployment benefits in 2024, you don't need to report any on your 2024 taxes. When your benefits are eventually paid in 2025, they'll be reported on your 2025 taxes (with a 1099-G issued in January 2026). The reporting is based on when you receive the money, not when you applied or qualified for it.
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Adrian Connor
•Oh that makes total sense! Thank you so much for clarifying. So even if they eventually approve my claim and give me backpay for weeks in December 2024, those payments would still count for 2025 taxes because that's when I'd actually receive the money? That's a huge relief - I can go ahead and file now without worrying.
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Ryder Everingham
im in the EXACT same boat!! applied dec 10 and still nothing but 'pending' status. so frustrating!!! did u try calling them yet?? i tried 23 times today and never got thru :
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Adrian Connor
•It's the worst, right? I've tried calling about 5-6 times and either get disconnected immediately or end up on hold for over an hour before getting cut off. I've sent messages through eServices too but no response there either. Seems like a lot of us are stuck in this limbo.
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Lilly Curtis
I work as a tax preparer, and I can confirm what the previous poster said. You only report unemployment benefits in the tax year you actually received the payments. ESD won't even issue you a 1099-G for 2024 if you didn't receive payments in 2024. One important thing to keep in mind: When you do start receiving benefits in 2025 (including any backpay), make sure you're setting aside some money for taxes if you didn't opt for tax withholding. Many people get surprised by the tax bill the following year.
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Adrian Connor
•Thank you for the professional input! That's a great point about setting aside money for taxes. I did select the withholding option when I applied, but I'll double-check that once benefits actually start coming through.
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Leo Simmons
You guys should try Claimyr if you need to actually reach someone at ESD. After weeks of failed calling attempts I used their service and got through to an agent in about 20 minutes. They basically call ESD for you and connect you when they get through. Saved me HOURS of frustration. Their website is claimyr.com and they have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3. The agent I spoke with was able to move my claim forward from the pending status.
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Lindsey Fry
•sounds sketchy tbh...why pay someone to call for you? cant u just keep calling urself?
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Leo Simmons
•It's not sketchy at all - they just have technology that keeps trying to get through the phone lines automatically. I tried calling myself for 3 weeks straight with no luck. Spent my entire morning on redial. For me it was worth it to finally get answers and get my claim unstuck.
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Saleem Vaziri
The ESD system is BROKEN and they don't care!!! I waited NINE WEEKS last year for my claim to process and then they denied me for some bogus reason and I had to appeal. By the time I got any money I was almost evicted!! And good luck even getting someone on the phone - the system hangs up on you constantly. The whole thing is designed to discourage people from getting benefits they deserve!!
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Kayla Morgan
•I'm sorry that happened to you. The system definitely has serious issues, but I don't think it's intentionally designed to deny people benefits - they're just severely understaffed and operating with outdated technology. My neighbor works at ESD and says they're constantly trying to catch up with claims but can't keep pace with the volume. Not making excuses for them, but sometimes understanding what's happening behind the scenes helps with the frustration.
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Ryder Everingham
has anyone gotten a letter saying they need to submit ID verification??? i got one yesterday but the website keeps crashing when i try to upload my docs
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Aisha Jackson
•Try using a different browser for the ID verification uploads. Chrome seems to work best with the ESD system. Also, make sure your files aren't too large - they need to be under 4MB each. If you're still having trouble, you can also mail in physical copies to the address on the letter, but online is faster when it works.
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Kayla Morgan
To answer your original question about taxes - I was in a similar situation last year. I filed my taxes without reporting any unemployment since I hadn't received payments yet. When my benefits finally came through a few months later (including backpay), I just reported it on this year's taxes. My accountant confirmed this was the correct approach. The key thing is to report income when you actually receive it, not when you earn eligibility for it.
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Adrian Connor
•Thanks for sharing your experience! That's reassuring to hear that someone else has navigated this exact situation. I'll go ahead with filing now and will just include any payments on next year's taxes when I actually receive them.
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James Maki
dont forget to keep doing ur weekly claims even while waiting for the initial claim to process!!!! i messed up and missed 2 weeks of filing while waiting for my claim to be approved and they wouldnt let me backfile those weeks even tho my claim was still pending!!
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Adrian Connor
•Oh wow, thank you for this reminder! I've been filing every week, but almost skipped last Sunday because I was so frustrated with the whole process. Glad I didn't now!
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Aisha Jackson
One more tax tip since we're on the subject: When you do start receiving unemployment benefits, remember that the first $10,200 of unemployment benefits are NO LONGER tax-free at the federal level. That was a one-time exception for 2020 during COVID. For 2024 and 2025, all unemployment benefits are fully taxable as income. Many people don't realize this and end up with a surprise tax bill.
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Lilly Curtis
•Great point. The $10,200 exclusion was specifically for tax year 2020 only. Now all unemployment compensation is fully taxable at the federal level, though some states don't tax it at the state level. Washington residents don't need to worry about state income tax, but federal taxes still apply to 100% of unemployment benefits received.
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