How to file taxes for unemployment benefits - Washington ESD 1099-G questions

Ugh, I had no idea unemployment was taxable. Nobody told me that when I was filing my claims. How much am I probably going to owe on $8,200?

It depends on your tax bracket, but probably around $820-1,640 depending on your other income. You can set up a payment plan with the IRS if you can't pay it all at once.

How do you change the withholding? I'm still on standby and want to make sure I don't get surprised again.

Log into your Washington ESD account, go to the weekly claim filing section, and there should be an option to update your tax withholding preference. You can choose 10% federal withholding.

Never heard of that service but might be worth it. I've been calling Washington ESD for two weeks trying to get a corrected 1099-G and can never get through.

Yeah it's pretty straightforward - they basically call for you and get you connected to an agent. Worked great for me when I needed to resolve a discrepancy on my tax form.

You're not screwed but you'll owe taxes on it. Make sure you have your 1099-G from Washington ESD and report it as income. You might want to talk to a tax professional if you're worried about the amount you'll owe.

This is such BS. Like I wasn't struggling enough already and now the government wants to tax the money they gave me because I was unemployed.

How do you check that? I just threw away all my weekly claim confirmations.

You can log into your eServices account and look at your payment history. It should show all your weekly payments and the total for the year.

Yes, report them separately. Your employer should give you a W-2 for the work income, and you report the unemployment from your 1099-G. Job search expenses used to be deductible but not anymore under current tax law.

That sucks about the job search expenses. I spent like $300 on gas driving to interviews and updating my resume.

No, you can't go back and have taxes withheld from benefits you already received. You'll just have to pay the taxes when you file or make an estimated payment.

That's what I figured. Guess I'm setting aside money for taxes this year.

Ugh $2,400? That's terrifying. I definitely need to figure out how much I'm going to owe.

Yeah it was rough. But now I always have taxes withheld from any benefits. Better safe than sorry.

How much does that service cost? Might be worth it if it actually gets you through to someone.

I don't want to get into specific pricing but it was worth it for me considering how much time I was wasting trying to call on my own. Check out their site if you're interested.

I feel like they should be required to mention this when you first apply for benefits. It's not like it's a minor detail.

Right? Like here's some money to help you get by, oh and by the way you'll owe us taxes on it later. Thanks for nothing.

How long did it take you to get through to someone? I've been trying for weeks.

I got lucky and called right when they opened at 8am. Only waited about 15 minutes. Try calling exactly at 8am on a Tuesday or Wednesday.

Washington ESD is required to send 1099-G forms by January 31st. If you haven't received yours, you can probably access it online through your eServices account or call them to request a copy.

Thanks, I'll check online first before trying to call. Hopefully it's available there.

Your 1099-G should reflect the actual benefits you received, not what you were supposed to receive. If Washington ESD overpaid you because of the reporting error, you might get an overpayment notice separate from tax issues.

Oh great, so I might owe money back to Washington ESD AND owe taxes on the overpayment? This keeps getting better.

How do you request a copy? Online or do you have to call?

I had to call because the online system wouldn't let me access old tax forms. It was a pain but I eventually got through.

There aren't any special deductions for unemployment benefits themselves, but you might qualify for other credits based on your total income. The unemployment benefits are just treated as regular income for tax purposes.

That's disappointing but not surprising. Thanks for the info.

This is making me really nervous about how much I'm going to owe. Did you use any payment plans or just pay it all at once?

I set up a payment plan with the IRS. They're pretty reasonable about it as long as you don't ignore the bill. Better to arrange payments than to just not pay.

Good to know they can help with tax form questions too. I might need to use that service if I can't figure out my 1099-G discrepancy.

Yeah, the agents can access your full payment history and explain any discrepancies. Much better than trying to figure it out on your own.

Good luck with your taxes! It's definitely a learning experience the first time you have to deal with unemployment benefits on your tax return.

Thanks! Definitely not something they teach you in school but good to know for the future.

Great advice. I wish I had been more organized about this stuff from the beginning.

Live and learn! At least you know for next time. Organization really pays off when dealing with government agencies.