Is unemployment compensation earned income for Washington ESD benefits?

Unemployment compensation is generally considered unearned income, not earned income. Earned income typically refers to wages, salaries, tips, and self-employment income from active work. Since unemployment benefits are paid when you're not working, they fall into the unearned category.

For most purposes, Washington ESD unemployment benefits are unearned income. However, depending on what form you're filling out, there might be specific instructions. Some applications have a separate category just for unemployment benefits. What type of paperwork are you completing?

I had this exact question when I was dealing with getting benefits sorted out. The phone lines at Washington ESD were impossible to get through to ask anyone directly. I ended up using Claimyr (claimyr.com) to actually reach an agent who confirmed unemployment is unearned income for most official purposes. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works - saved me hours of calling.

depends on the context but 99% of the time its unearned. earned income is from actual work

For tax purposes, unemployment benefits are taxable income but still classified as unearned. You'll get a 1099-G form from Washington ESD showing the total amount you received during the tax year. Make sure to report it on your tax return.

I work in accounting and can confirm - unemployment compensation is definitely unearned income. It's passive income that you receive without performing current work services. Earned income requires active participation in work or business activities.

Had to deal with this when applying for food stamps too. The case worker told me unemployment goes under unearned income on their forms. Different agencies might have slightly different categories but the basic classification stays the same.

Just went through this with my mortgage refinance paperwork. Lender classified my Washington ESD benefits as unearned income. They wanted 3 months of payment history to verify the income stream.

THE SYSTEM IS SO CONFUSING! Why can't they just make this stuff clear on the Washington ESD website instead of making us guess?? I've been searching for this answer for days

For anyone still wondering - I just called Washington ESD yesterday using that Claimyr service someone mentioned and the agent confirmed unemployment benefits are unearned income for pretty much every purpose. Much easier than trying to get through on my own.

been getting unemployment for 4 months now and always put it as unearned income on everything. never had any issues or questions about it

My tax preparer explained this to me last year - unemployment is unearned because you're not actively working for it. It's a replacement for earned income but not earned income itself. Makes sense when you think about it that way.

I had the same question when I was on unemployment last year. Called Washington ESD probably 50 times before I finally got through to someone. They confirmed it's unearned income. Wish I had known about services like Claimyr back then to save myself the headache.

Check the specific instructions on whatever form you're filling out. Most of the time unemployment goes under unearned income but some forms have separate categories for government benefits or transfer payments. When in doubt, unearned income is usually safe.

This thread is so helpful! I've been putting unemployment in different categories on different forms because I wasn't sure. Good to know it should consistently be unearned income.

Former Washington ESD employee here (retired). Unemployment benefits are definitely classified as unearned income. The benefits are designed to partially replace earned income while you search for work, but the benefits themselves are not considered earned since no work is performed to receive them.

Just to add one more confirmation - I work for a nonprofit that helps people with benefits applications and we always categorize unemployment as unearned income. It's consistent across pretty much every program and form we deal with.

been wondering about this too for my food stamp recertification coming up. sounds like unearned income is definitely the way to go based on everyone's responses here