How much do you get taxed on unemployment benefits in Washington?

Thanks! How do I set up the withholding? Is it something I can do online through the Washington ESD website?

Yes, you can change your withholding preferences when filing your weekly claim. There's a section where you can elect to have federal taxes withheld.

Wow that's a lot! I definitely don't want to get hit with a big tax bill. Better to have it taken out now.

Same thing happened to me! The 10% withholding usually covers most of what you'll owe, maybe even gives you a small refund.

Wait, so I don't owe any state taxes on unemployment in Washington? That's actually really helpful to know.

Correct! Washington has no state income tax, so unemployment benefits are only subject to federal income tax.

Is that service legit? I've been trying to call Washington ESD for days about various issues and can never get through.

Yeah it's legitimate. They basically call for you and get you connected to an actual person at Washington ESD. Saved me hours of busy signals.

I've heard about services like this but wasn't sure if they were scams. Good to know there's a real solution for the phone nightmare.

That makes sense. I think I'll set up the withholding when I file my claim this week.

Definitely the smart move. Unemployment is considered regular income for tax purposes, just like wages from a job.

With additional income you might want to consult a tax professional. The 10% might not be sufficient depending on your total income and tax bracket.

Good point. I'll probably talk to my accountant about making quarterly payments to be safe.

Unemployment insurance benefits are definitely taxable income. It's not the same as welfare programs like TANF or food stamps, which aren't taxable.

ugh that sucks. so basically getting laid off means you get less money AND still have to pay taxes on it

Yeah it's frustrating but that's how it works. At least with the withholding option you don't get surprised at tax time.

Do they mail the 1099-G or is it available online?

Both. You can access it through your Washington ESD online account and they also mail a paper copy by the end of January.

How much does Claimyr charge? I'm getting desperate to talk to someone about my claim.

It's totally worth it for the time savings. Check their website for current pricing. Way better than calling hundreds of times yourself.

That's a good point I hadn't considered. My spouse is still working full-time so our combined income might affect our tax situation.

Yeah definitely run the numbers or talk to a tax preparer if you're unsure. Better safe than sorry.

Yes, you can change your withholding election at any time. Just update it when you file your next weekly claim.

Perfect, thanks! I'll do that this Sunday when I file my weekly claim.

I keep hearing about this service. Seems like it's really helping people actually reach Washington ESD agents.

Honestly the phone situation with Washington ESD is so bad that services like Claimyr are almost necessary. I don't know how people manage without them.

That's smart planning. I'll keep that in mind since I'm starting benefits in the middle of the year.

You can also make estimated tax payments quarterly if you prefer to handle it yourself rather than through withholding.

Yeah, I'm grateful for that. Dealing with federal taxes is enough complexity.

True, could be worse. Some states tax unemployment benefits on top of federal taxes.

This is exactly the advice I needed. I'm going to set up the withholding this week. Thanks everyone for all the helpful information!

Good choice! You'll thank yourself next April when you don't owe a huge chunk to the IRS.