How much tax is taken out of my unemployment check - Washington ESD withholding questions
I just started getting my Washington ESD unemployment benefits and I'm confused about the tax situation. I opted to have taxes withheld when I filed my initial claim, but I'm not sure if it's the right amount. My weekly benefit is $487 and I'm seeing $438 deposited into my account. Is that normal? I don't want to owe a bunch of money come tax time but I also need as much cash as possible right now. Can anyone explain how the tax withholding works with Washington ESD?
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Juan Moreno
Washington ESD withholds 10% for federal taxes if you elect to have taxes taken out. So on $487 that would be about $48.70 withheld. The difference you're seeing might also include any child support or other deductions. Check your payment history on your Washington ESD account to see the exact breakdown.
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Savanna Franklin
•Thanks! I'll check my payment history. I don't have any child support so it should just be the federal taxes.
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Amy Fleming
•Wait I thought it was more than 10%? Mine seems like way more is being taken out
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Alice Pierce
Yeah 10% is the standard federal withholding rate for unemployment. Washington state doesn't have income tax so there's no state withholding. You can change your withholding election anytime by logging into your SecureAccess Washington account and updating your profile.
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Savanna Franklin
•Good to know I can change it if needed. Right now I think I'll stick with having it withheld.
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Esteban Tate
•I wish I had done withholding from the start. Ended up owing like $2800 in taxes last year on my unemployment.
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Ivanna St. Pierre
If you're having trouble getting through to Washington ESD to check on your withholding status, I had luck using Claimyr recently. It's a service that helps you get through to an actual agent faster. They have a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works. Way better than sitting on hold for hours.
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Savanna Franklin
•I haven't had to call yet but good to know there's an option if I need it.
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Elin Robinson
•Never heard of that service but the phone situation with Washington ESD is definitely frustrating
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Atticus Domingo
Just remember unemployment is taxable income at the federal level. Even with 10% withheld you might still owe depending on your total income for the year and your tax situation. I always recommend setting aside a little extra just in case.
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Savanna Franklin
•Good point. I'm hoping to find work soon so hopefully it won't be a huge amount.
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Beth Ford
•This is why I never have taxes withheld. I just put 15% of each payment in a separate savings account for taxes.
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Alice Pierce
•That's smart if you have the discipline. A lot of people spend it and then get hit with a big tax bill.
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Amy Fleming
I'm so confused about all this tax stuff. I elected to have taxes withheld but I'm seeing different amounts taken out each week. Sometimes it's $45, sometimes $52. Is that normal?
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Juan Moreno
•Your benefit amount might be varying week to week if you're reporting part-time work. The withholding is 10% of whatever your weekly benefit is.
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Amy Fleming
•Oh that makes sense. I did work a few hours some weeks.
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Esteban Tate
PSA for everyone - if you didn't elect withholding and you're getting a decent amount in unemployment, start setting money aside NOW. I learned this the hard way. Got $18,000 in unemployment last year and owed almost $3,000 in taxes because I didn't withhold anything.
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Savanna Franklin
•Yikes! That's exactly what I'm trying to avoid.
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Morita Montoya
•Same thing happened to my brother. He had to set up a payment plan with the IRS.
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Kingston Bellamy
•This is why I always tell people to withhold. Better to get a refund than owe money you don't have.
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Elin Robinson
Can you change your withholding election in the middle of your claim? I didn't elect to have taxes withheld when I first filed but now I'm thinking I should.
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Alice Pierce
•Yes you can change it anytime. Log into your SecureAccess Washington account and look for tax withholding under your profile settings.
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Elin Robinson
•Perfect, I'll do that tonight. Thanks!
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Joy Olmedo
Question about the 10% withholding - is that enough to cover what you'll actually owe? I'm in a pretty low tax bracket normally.
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Juan Moreno
•It depends on your total income and tax situation. 10% might be enough if you're in a low bracket, but unemployment could push you into a higher bracket if you had other income during the year too.
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Atticus Domingo
•I'd recommend talking to a tax preparer if you're unsure. The 10% is just a standard withholding rate, not necessarily what you'll actually owe.
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Isaiah Cross
Does anyone know if there are any other deductions that might come out besides taxes? I swear my check is smaller than what I calculated with just the 10% withholding.
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Juan Moreno
•Could be child support, student loan garnishment, or other court-ordered deductions. Check your payment history in your Washington ESD account for the full breakdown.
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Isaiah Cross
•I'll check that. I don't think I have any garnishments but maybe something I'm not aware of.
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Kiara Greene
For what it's worth, I've been getting unemployment for 8 weeks now with 10% withheld and my tax guy said it should be pretty close to what I'll actually owe. Of course everyone's situation is different.
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Savanna Franklin
•That's reassuring to hear. I think I'll stick with the 10% withholding for now.
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Evelyn Kelly
I hate that unemployment is taxable at all. It's not like we asked to lose our jobs! But yeah, 10% federal withholding is standard. No state tax in Washington thankfully.
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Paloma Clark
•I know right? It's like being kicked when you're already down.
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Heather Tyson
•At least Washington doesn't have state income tax. I have friends in other states getting hit with both federal and state taxes on their unemployment.
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Raul Neal
Quick tip - if you're doing gig work or part-time work while on unemployment, make sure you're setting aside taxes on that income too. The withholding from Washington ESD only covers the unemployment benefits, not your other income.
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Savanna Franklin
•Good point. I haven't done any gig work yet but I'll keep that in mind if I do.
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Jenna Sloan
•Yeah I learned this the hard way doing DoorDash while on unemployment. Forgot to set aside money for taxes on that income.
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Christian Burns
If anyone needs to talk to Washington ESD about changing their withholding and can't get through on the phone, I used claimyr.com last week and actually got connected to an agent. Saved me hours of calling and getting busy signals.
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Sasha Reese
•How much does that service cost? I've been trying to get through to ask about my withholding status.
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Christian Burns
•I don't remember the exact cost but it was worth it to actually talk to someone. Check out their site for current pricing.
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Muhammad Hobbs
Just wanted to add that if you're married and filing jointly, the 10% withholding from unemployment might not be enough depending on your spouse's income. Might want to have extra withheld or make quarterly payments.
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Savanna Franklin
•I'm single so hopefully the 10% will be sufficient for my situation.
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Noland Curtis
•Good point about married filing jointly. The tax brackets are different and you could end up owing more.
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Diez Ellis
One more thing - make sure you keep all your Washington ESD documentation for tax time. You'll get a 1099-G form showing how much you received and how much was withheld, but it's good to have your own records too.
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Savanna Franklin
•Thanks for the reminder. I've been saving all my payment confirmations just in case.
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Vanessa Figueroa
•Yes! I made the mistake of not keeping good records one year and it was a nightmare trying to figure everything out at tax time.
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