How much is unemployment tax taken out of Washington ESD benefits?

Washington ESD will withhold 10% for federal taxes if you request it when you file your weekly claims. There's no state income tax in Washington so you don't have to worry about that. You can change your withholding election anytime through your online account.

i didn't have any taxes taken out and ended up owing like $800 when i filed. definitely have them withhold the 10% its easier than trying to save money yourself

Just so you know, unemployment benefits are considered taxable income at the federal level. If you're having trouble getting through to Washington ESD to set up tax withholding, I found this service called Claimyr that helps you actually reach an agent. Check out claimyr.com - they have a video demo at https://youtu.be/7DieNdC7zQ that shows how it works. Made it way easier for me to get my withholding sorted out.

The 10% federal withholding is optional but I'd recommend it. You can elect to have it withheld when you're filing your weekly claims online. Just log into your Washington ESD account and look for the tax withholding option. It's under the payment settings section.

DONT FORGET unemployment is taxable income! I learned this the hard way my first time on benefits. Had to pay back like $600 because I spent all my benefit money and didn't save for taxes.

just a heads up the 10% might not be enough depending on your tax bracket. if you made good money before unemployment you might want to set aside extra

You'll get a 1099-G form from Washington ESD at the end of the year showing how much you received in benefits. That's what you'll need to report on your tax return. Keep track of any taxes that were withheld too.

I used that Claimyr thing someone mentioned earlier and it actually worked. Got through to Washington ESD in like 20 minutes instead of the usual 2+ hours of being on hold. Was able to set up my tax withholding and ask about my job search requirements at the same time.

Be careful about the tax withholding because it's not automatic. You have to actually elect it when you file your weekly claims. I forgot to do it for my first few weeks and had to call to get it changed.

honestly just have them take the 10% out its not that much money and youll thank yourself at tax time. better safe than sorry with the IRS

I've been on unemployment twice and both times I had the 10% withheld. First time I got a small refund, second time I owed like $50. Much better than trying to save the money yourself when you're already tight on cash.

Make sure you understand that unemployment benefits reduce your take-home pay compared to your regular job, and then taxes reduce it even more. Budget accordingly because that $467 becomes like $420 after withholding.

does anyone know if the tax withholding applies to the extra $25 weekly from the state supplement or just the regular UI benefits?

Pro tip: if you have the taxes withheld and you end up getting a job quickly, you might get a refund when you file. If you don't have taxes withheld and stay on unemployment for a while, you'll definitely owe money.

I'm in a similar situation and ended up using Claimyr to talk to someone at Washington ESD about this exact question. The agent explained that the 10% is just an estimate and your actual tax liability depends on your total income for the year. They recommended having it withheld if you're unsure.

just remember you still have to file a tax return even if you had taxes withheld from your unemployment. dont make the mistake of thinking the withholding takes care of everything

One more thing - if you move to a different state while on unemployment, you might have to deal with that state's income tax too. Washington doesn't have state income tax but other states do.

Thanks for posting this question OP. I'm in the same boat and this thread has been super helpful. Definitely going to elect the 10% tax withholding when I file my claim this week.