How much is tax on unemployment benefits in Washington - confused about what I owe

Unemployment benefits are definitely taxable income at the federal level and you'll pay your regular income tax rate on them. Since you received $18,500 and that was most of your income, you'll probably be in the 12% federal tax bracket. The good news is Washington has no state income tax so you won't owe anything to the state.

Don't forget you might also owe self-employment tax if you did any freelance or gig work while on unemployment. That caught me by surprise last year.

I had the same situation last year and ended up owing about $3,000 on $22,000 in unemployment. What really helped me was using Claimyr to get through to Washington ESD when I needed my 1099-G form. Their system actually got me connected to an agent in like 10 minutes instead of the usual hours of calling. Check out claimyr.com - they have a video demo at https://youtu.be/7DieNd3C7zQ that shows exactly how it works.

The tax rate depends on your total income for the year. If $18,500 was really your only income, you're looking at maybe 10-12% federal tax rate. But remember you get the standard deduction first ($13,850 for single filers in 2024), so you'd only pay tax on about $4,650 of your unemployment.

ugh I HATE that they make unemployment taxable!! Like we're already struggling and then they want to tax the money that's supposed to help us survive. Makes no sense to me.

Make sure you have your 1099-G before you file. I made the mistake of estimating my unemployment amount and it didn't match what Washington ESD reported. Had to amend my return and it was a huge hassle.

I had taxes withheld from my unemployment and still ended up owing more. It's because they only withhold at a flat 10% rate but your actual tax rate might be higher depending on your other income.

Pro tip: if you can't pay your tax bill all at once, the IRS has payment plan options. You can set up an installment agreement online. The interest and penalties are usually pretty reasonable.

Wait, so unemployment is taxed like regular wages? I thought there might be some special treatment since it's government assistance.

I finally got through to Washington ESD using that Claimyr service someone mentioned earlier. Took about 8 minutes and I was able to get my 1099-G form info over the phone. Definitely worth the small fee when you consider how long I'd been trying to call on my own.

Don't forget that you might qualify for the Earned Income Tax Credit even with unemployment income. It's worth checking when you file your taxes.

I'm in the same boat - got about $16,000 in unemployment last year and no taxes withheld. Planning to file this weekend but wanted to make sure I had all the right forms first.

One thing to remember is that if you received unemployment in 2024, you'll need to report it on your 2024 tax return that you're filing now. Don't wait until next year thinking it's for 2025 taxes.

The thing that got me was quarterly estimated taxes. If you think you'll owe more than $1,000 when you file, you're supposed to make quarterly payments throughout the year. Nobody told me that when I was on unemployment.

For anyone still trying to get their 1099-G from Washington ESD, I highly recommend Claimyr. I was skeptical at first but it really works. Got connected to an actual person who could help instead of being stuck in phone tree hell.

Quick question - does anyone know if the amount on the 1099-G includes the extra federal unemployment benefits or just the regular Washington state amount?

I used TurboTax last year and it walked me through the unemployment tax stuff pretty well. Just make sure you have your 1099-G before you start.

Thanks everyone for all the help! This thread has been super informative. I feel much better about tackling my taxes now.