How to add Washington ESD unemployment benefits to my 2024 tax return?

Thanks! So I just put the full amount from Box 1 of the 1099-G on line 7 of Schedule 1?

Exactly right. The full amount from Box 1 goes on Schedule 1, line 7, then gets transferred to your main 1040 form.

Yes, I see $1,200 in Box 4. Does that get entered somewhere special or does TurboTax handle it automatically?

it goes on line 25b of form 1040. most tax software will ask you about it when you enter the 1099-G info

I finished my benefits in December so hopefully won't need to worry about that this year. But good to know for anyone still collecting!

Wait, they only withhold 10%? I thought it was more than that. That explains why I owe so much this year...

Yes, it's a flat 10% federal withholding rate for unemployment benefits. Many people don't realize this and get surprised at tax time.

How much does something like that cost? Seems like it might be worth it to avoid the phone nightmare.

I think it varies depending on what you need, but honestly it was worth it just to get my 1099-G questions answered quickly instead of spending days trying to get through.

Good point! I got mine in the mail but it's good to know I can get it online too if needed.

How do you access it online? I can't find it in my SAW account anywhere.

Log into SecureAccess Washington, go to your ESD account, and look for 'Tax Documents' or '1099-G' in the menu. It should be there if you received benefits last year.

I didn't have any overpayments thankfully, but that's good to know for others who might.

Where would the overpayment repayment show up on the 1099-G? I had to pay back about $800 last year.

Repayments usually show in Box 3 of the 1099-G. You can deduct that amount from your taxable unemployment income.

I feel you! At least unemployment is pretty straightforward compared to some of the other stuff they throw at us.

true, could be worse. just wish they made it clearer from the start what we'd owe

You'll report both 1099-Gs on your federal return, just add them together on Schedule 1. For state taxes, you'll need to file returns in both states where you received benefits.

Thanks! That makes sense. Guess I'm doing multiple state returns this year.

Good advice! I was wondering about that since my amount has some odd cents at the end.

Yeah the IRS gets a copy of your 1099-G so everything needs to match exactly or you might get a notice later.

Did they help with tax questions or just general ESD stuff?

They can help you reach ESD agents who can answer questions about your 1099-G, like if there are errors or missing information. Really helpful when you can't get through on your own.

I'm using TurboTax but good to know other software handles it well too. Makes me feel more confident about doing it myself.

Most of the major tax software programs are pretty good with unemployment benefits now since so many people dealt with it during COVID.

I didn't know unemployment could count toward that. I'll have to look into it.

Unemployment benefits do count as earned income for EITC purposes, but there are income limits and other requirements to qualify.

That's probably smart. I've been keeping everything in a folder just in case.

3 years is the standard for most tax records, so that makes sense. I keep mine in a digital folder on my computer.

That's reassuring! I've been putting it off because I was worried it would be complicated.

nah its pretty straightforward. just have your 1099-g handy and follow the prompts in whatever tax software youre using

You can request additional withholding when you file your weekly claims, but I think the maximum is still pretty low. Might be better to make quarterly estimated payments if you're concerned.

Good point about estimated payments. I'll look into that option.

Same here! Really appreciate all the advice. Makes me feel much more confident about tackling my taxes this weekend.

That's what this community is for! We've all been there with confusing tax situations.

Good catch! My benefits were all from 2024 so shouldn't be an issue, but that's definitely something to watch out for.

Yeah, the COVID exclusions only applied to specific years and amounts. 2024 unemployment is fully taxable.

How long did it take to get the corrected form once you talked to someone?

They said 7-10 business days and it actually came in about a week. Much faster than I expected from ESD.

Glad it helped! I'm feeling much better about doing mine too. Good luck with your return!

You got this! The unemployment part really is straightforward once you know where everything goes.