Is Washington ESD unemployment considered unearned income for tax purposes?

Unemployment benefits are considered taxable income by the IRS, but they're actually categorized as neither earned nor unearned income - they're in their own category. You'll report your Washington ESD benefits on your 1040 form, and you should have received a 1099-G form from the state showing the total amount.

just went through this same thing with my taxes. unemployment is taxable but its not earned income for things like earned income tax credit. found that out the hard way when my refund was smaller than expected

I had similar confusion last year. The key thing to remember is that Washington ESD unemployment benefits are fully taxable as ordinary income, but they don't count as earned income for certain tax benefits. If you had taxes withheld from your UI payments, you might get some of that back depending on your total tax liability.

Ugh, I'm dealing with something similar but I can't even get into my Washington ESD account to check my payment history. Been trying to call them for weeks to get my 1099-G info but their phone lines are always busy. Anyone know a better way to reach them?

For what it's worth, unemployment benefits have always been taxable income. Some people got confused during COVID because there was a temporary exclusion for 2020, but that was just for one year. Regular unemployment like what Washington ESD pays has always been taxable.

The distinction between earned and unearned income matters for several things beyond just taxes. For example, if you're applying for certain benefits or programs, they might ask specifically about earned income vs unearned income. Unemployment typically falls into neither category or gets its own category.

also worth mentioning that if you had to pay back any unemployment benefits (like if you had an overpayment), that affects your taxes too. you can deduct the repayment amount

Just want to add that if you're still collecting unemployment benefits, you can have taxes withheld from your weekly payments to avoid owing a big tax bill. You can change this setting in your Washington ESD account.

been through this multiple times unfortunately. unemployment is taxable income but not earned income. it doesnt count for social security credits either if thats something youre worried about

One thing that caught me off guard was that unemployment can push you into a higher tax bracket if you had other income during the year. Just something to keep in mind when planning.

if you need help with your Washington ESD account or getting documents, I had good luck with that Claimyr service someone mentioned earlier. They helped me get through to an actual person when I was having issues with my account

Bottom line: unemployment from Washington ESD is taxable income that goes on your 1040, but it's not considered earned income for things like EITC or Social Security. Make sure you have your 1099-G form and report it correctly.

Also remember that Washington state doesn't have a state income tax, so you only need to worry about federal taxes on your unemployment benefits. That's one less thing to deal with.