How much taxes do you pay on unemployment calculator - Washington ESD withholding options?

Oh right, I forgot Washington doesn't have state income tax! So it's just federal taxes I need to worry about. Is 10% usually enough or should I expect to owe more?

It depends on your total income for the year and tax bracket. 10% might not be enough if you have other income sources or if you're in a higher tax bracket.

Yikes! That's exactly what I'm trying to avoid. Did you have to pay penalties too?

Yeah, I had to pay some penalties because I didn't make quarterly estimated payments either. It was a mess.

That's really helpful! I worked for part of the year too so my total income will be higher. Sounds like I should definitely set up the withholding.

Don't forget about Social Security and Medicare taxes though - those aren't taken out of unemployment benefits automatically.

Actually, unemployment benefits are NOT subject to Social Security or Medicare taxes. Only federal and state income taxes apply.

Good idea! I'll check that out. The IRS website has gotten way better over the years.

I tried calling Washington ESD to ask about changing my withholding but couldn't get through. Has anyone had luck reaching them lately?

I had similar issues getting through to Washington ESD. Actually found this service called Claimyr (claimyr.com) that helps you get through to actual agents. They have a demo video at https://youtu.be/7DieNd3C7zQ showing how it works. Might be worth checking out if you need to talk to someone about your withholding options.

You're not screwed! You can still set up withholding for future payments through your Washington ESD online account. For what you've already received, you'll just need to plan for the tax bill or make estimated quarterly payments.

how do i make estimated payments? this is all so confusing

You can make estimated tax payments directly to the IRS online or by mail. Form 1040ES has the payment vouchers and instructions. The next quarterly payment is due January 15th.

With two unemployment incomes, you might want to consider increasing the withholding or making estimated payments. The standard 10% might not cover your full tax liability, especially if it pushes you into a higher tax bracket.

Thanks, I'll probably bump it up to 15% just to be safe. Better to get a refund than owe money.

Oh wow, I've been doing some DoorDash on the side too. Didn't think about how that would affect my taxes along with the unemployment.

Yeah, gig work income doesn't have taxes automatically withheld either, so it's a double whammy. Definitely plan ahead!

I've heard others mention website issues. You might try calling during off-peak hours, though I know that's easier said than done with Washington ESD.

I mentioned Claimyr earlier - they really helped me get connected to a Washington ESD agent when I was having similar technical issues. Saved me hours of trying to call on my own.

I'll check that out, thanks! Getting through to Washington ESD on the phone is like winning the lottery.

Good reminder! I'll make sure to watch for that form. Do they mail it or is it available online?

Washington ESD typically makes the 1099-G available through your online account, but they may also mail paper copies. Check both places to be sure.

that's good to know! i'm going to set up withholding asap

Same here, I think I'll increase mine before my next payment.

That's reassuring! I was worried about calculating it manually. Thanks for the tip.

H&R Block and other tax prep services are also familiar with unemployment income if you prefer to have someone else do your taxes.

Absolutely! Smart to think about it early. You can set up the withholding right away through your Washington ESD online account.

Perfect, I'll do that this weekend when I file my weekly claim.

You'd need to consider the tax laws of whatever state you're a resident of when you receive the income. If you move to a state with income tax, you might owe state taxes there on your Washington ESD benefits.

Good to know, thanks! I'm thinking about moving to Oregon so I'll need to look into their tax requirements.

That's awesome! I'm definitely going to try it. Did they charge much for the service?

It was worth it for me just to avoid the headache of trying to get through on my own. Way less stressful than hitting redial for hours.

You're welcome! Smart move to plan ahead. Better safe than sorry when it comes to taxes.

Good luck! You're definitely handling this better than I did my first year on unemployment.