How much taxes do you pay on unemployment benefits in Washington?

Yes, unemployment benefits are fully taxable at the federal level. You'll need to pay federal income tax on the entire $18,000. The good news is Washington state doesn't have income tax, so you won't owe anything to the state. You should have received a 1099-G form from Washington ESD showing your total benefits.

I made the same mistake last year - didn't withhold taxes and got hit with a big bill. For $18k in benefits, you're probably looking at owing around $2,000-4,000 depending on your other income and filing status. The exact amount depends on your marginal tax rate.

For future reference, you can have taxes withheld from your unemployment benefits when you file your weekly claims. Washington ESD gives you the option to withhold 10% for federal taxes. It's in the preferences section of your online account.

Wait, I thought there was something about unemployment not being taxed during COVID? Or am I thinking of something else?

I had trouble getting through to Washington ESD when I had questions about my 1099-G form. Ended up using Claimyr (claimyr.com) to actually reach someone. They have this system that gets you connected to an agent without waiting on hold forever. There's a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works.

Just want to add - make sure you keep all your documentation from Washington ESD. If there are any discrepancies between what you received and what's on your 1099-G, you'll need to contact them to get it corrected before you file your taxes.

this is why i never trust the government with anything. they give you money when you need it then want it all back at tax time. makes no sense

Pro tip: if you're doing your own taxes, make sure to enter the unemployment income correctly. Some tax software doesn't automatically pull it from the 1099-G and you have to enter it manually.

Does anyone know if you can deduct job search expenses against the unemployment income? I spent a lot on gas driving to interviews and printing resumes.

I'm in the same boat - got about $15k in unemployment last year and didn't withhold taxes. Planning to file early and set up a payment plan if I can't pay it all. The IRS website has a tool to estimate what you'll owe.

Quick question - if I had taxes withheld from my regular job but not from unemployment, do I still need to pay quarterly taxes or anything like that?

Anyone else having trouble accessing their Washington ESD account to get their 1099-G? Mine keeps timing out when I try to log in.

Just a heads up - if you received any overpayment notices from Washington ESD, make sure those are handled correctly on your taxes. You might be able to deduct money you had to pay back.

The whole tax situation with unemployment is so confusing. I wish Washington ESD did a better job explaining this when you first file for benefits.

For what it's worth, I ended up owing about $3,200 on $16,000 in unemployment benefits. That was with no other income and filing single. Just to give you a ballpark idea.

Make sure to keep records of any job search activities you did while on unemployment. While you can't deduct the expenses anymore, Washington ESD might ask for documentation if they ever audit your claim.

Thanks everyone for all the helpful info! I feel much better prepared to deal with my taxes now. Going to file early and see what happens.

One thing I learned the hard way - if you're planning to be on unemployment again in the future, definitely set up the tax withholding from the start. Even though it reduces your weekly benefit amount, it's so much better than getting hit with a huge tax bill later. You can change the withholding setting in your Washington ESD online account under preferences. I wish I had known this when I first filed - would have saved me so much financial stress during tax season.