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

Thanks! I didn't know I had to request it. Is 10% usually enough to cover what I'll owe?

It depends on your total income for the year, but 10% is often close. You might still owe a little at tax time depending on your other income.

Wow that's a lot! I'll definitely set up the withholding right away.

That seems high - was that just federal or did you owe state taxes too? Washington doesn't have state income tax.

Just federal. I was in a higher tax bracket because of my previous job income earlier that year.

Ugh the phone system is impossible. I've been trying to call for weeks about a different issue and can never get through.

Try using Claimyr.com - they have a service that helps you get through to Washington ESD agents. I used it last month and actually got connected within an hour. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works.

Never heard of that but I'm desperate at this point. Does it actually work?

Yeah it worked for me. Way better than sitting on hold for hours just to get disconnected.

How do I calculate that? I'm not great with tax stuff.

If unemployment is your only income this year, 10% should be plenty. If you have other income, you might need more withheld or should save extra for taxes.

That's not too bad. I think I'll set up the withholding just to be safe.

Smart move. Better to get a small refund than owe a bunch at tax time.

Good to know! So Washington ESD will mail me that form?

Yes, they mail it out in January for the previous tax year. You can also access it online through your Washington ESD account.

Yes, unemployment benefits count as taxable income so you'll need to file if you received enough to meet the filing threshold.

Great, another thing to worry about. Thanks for the info though.

You can change your tax withholding settings anytime when you file your weekly claims. It doesn't require starting a new claim.

Perfect, I'll update that this week. Better late than never I guess!

because everyones tax situation is different. some people might not want taxes withheld if they know they wont owe much

I guess that makes sense but seems like most people would want it withheld.

That's smart advice. I might do both - set up withholding and save a little extra just in case.

I wish I had thought of that. Would have saved me stress at tax time.

How long did it take you to get through? I've been trying for weeks about a different issue. That Claimyr service I mentioned earlier really helps - saved me hours of waiting on hold.

Took me about 3 hours of calling back repeatedly. I'll have to check out that Claimyr thing if I need to call again.

Just the 1099-G. Unemployment benefits aren't wages so you don't get a W-2. The 1099-G will show both the benefits you received and any taxes that were withheld.

Got it, thanks for clarifying!

That sounds complicated! I'm glad I just have to worry about regular employee taxes.

Yeah it can be tricky but the unemployment tax withholding definitely simplifies things a bit.

Yes, if you have tax withholding set up, it should apply to all unemployment payments including the waiting week benefit.

good to know, thanks!

That's exactly what happened to me! My regular job income plus unemployment put me in a higher bracket than I expected.

This is all making me realize I should probably talk to a tax professional. Thanks everyone for all the helpful info!

True but the withholding is easier for most people. Set it and forget it.

Definitely agree for most situations!