How to calculate unemployment tax on Washington ESD benefits - confused about what I owe

The 1099-G from Washington ESD shows your total benefits for the year. You'll need to add that amount to your other income on your tax return. The tax rate depends on your total income and filing status, but unemployment is taxed as ordinary income.

ugh same situation here, got like $8k in benefits and didn't realize it was all taxable until now

You can use tax software or the IRS free file program to calculate exactly what you owe. The key is to gather all your tax documents - your W-2s, the 1099-G from Washington ESD, and any other income forms. The software will walk you through adding the unemployment income.

If you're having trouble getting specific info from Washington ESD about your benefits or need clarification on your 1099-G, I found this service called Claimyr (claimyr.com) that helps you actually get through to ESD agents on the phone. They have a demo video at https://youtu.be/7DieNd3C7zQ showing how it works. Saved me hours of trying to call myself.

This is why the whole system is screwed!! They make it impossible to get help and then surprise you with huge tax bills. I'm going to owe like $2500 and I don't have it!!!

For future reference, you can request to have taxes withheld from your unemployment benefits when you file your weekly claims. Washington ESD gives you that option, it's usually 10% federal withholding.

wait so the entire amount on the 1099-G is taxable? even the extra $300 weekly payments we got?

Don't panic about the amount you might owe. Depending on your total income, you might qualify for the Earned Income Tax Credit or other credits that could reduce what you owe. Also, if you had any taxes withheld from other jobs, that counts toward your total tax liability.

Pro tip: if you're doing your own taxes, make sure you enter the unemployment income correctly. It goes on line 7 of Form 1040, not with your W-2 income.

I had a similar situation last year. Ended up owing about $1800 on $12k in unemployment benefits. What really helped was using the IRS payment plan - I pay $150 a month and there's hardly any interest.

Has anyone tried calling Washington ESD to ask about this? I bet they just tell you to figure it out yourself.

Quick question - do you have to pay state taxes on unemployment too? Or just federal?

The thing that got me was not realizing I needed to make quarterly estimated payments. If you owe more than $1000, you're supposed to pay estimated taxes throughout the year or you get penalized.

For anyone still confused about the calculation: take your total unemployment benefits, add them to all your other income, then look up your tax bracket. The unemployment gets taxed at whatever your marginal rate is.

just finished my taxes and owed $900 on about $7k in unemployment benefits. wasn't as bad as I thought it would be

Check if you qualify for any tax credits! The Child Tax Credit, Earned Income Credit, or education credits can really help offset what you owe on unemployment income.

My tax preparer told me that unemployment benefits don't count as earned income for the Earned Income Tax Credit, which was disappointing. But it does count as income for determining if you need to file a return.

Just wanted to follow up - if you do need to contact Washington ESD about your 1099-G or have questions about your benefit amounts, Claimyr has been working really well for people. Much easier than trying to get through on your own.

Thanks everyone for all the helpful info! I'm feeling a lot less panicked about this now. Going to use FreeTaxUSA to file and see what I end up owing.

One last tip - make sure to keep all your unemployment documentation. If the IRS ever questions your return, you'll want to have your weekly claim confirmations and the 1099-G from Washington ESD.