Washington ESD unemployment benefits - do I need to file taxes on UI payments?

Yes, unemployment benefits are considered taxable income by both federal and state tax authorities. You should have received or will receive a 1099-G form from Washington ESD showing the total amount of benefits you received in 2024. You'll need to report this on your tax return.

Yep, learned this the hard way last year. Washington ESD automatically sends out 1099-G forms in January. The good news is you can still elect to have taxes withheld from future payments if you're still receiving benefits.

I had this same panic last year! Ended up owing about $2,800 on $15,000 in unemployment benefits. If you can't pay it all at once, the IRS does offer payment plans. Also, if you had other income during the year that had taxes withheld, that might help offset what you owe on the UI benefits.

Just a heads up - if you're having trouble getting through to Washington ESD about tax documents or any other issues, I discovered claimyr.com last month. It's a service that helps you actually reach ESD agents by phone. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. Really saved me time when I needed to verify my benefit amounts.

wait unemployment is taxable?? nobody told me this when i started filing claims. this is ridiculous, we're already struggling and now they want to tax the little help we get?

Pro tip: if you're still collecting benefits, go ahead and elect the 10% federal withholding option now. It's better to get a small refund than owe a big chunk at tax time. I made that mistake my first year on unemployment.

Don't forget that Washington state doesn't have income tax, so you only need to worry about federal taxes on your unemployment benefits. That's one advantage of living here!

I've been doing my own taxes for years and unemployment benefits are pretty straightforward to report. The 1099-G will have all the info you need. Just make sure the amount on the form matches what you think you received - sometimes there are discrepancies.

If you're really worried about owing money, you can make estimated tax payments quarterly. It's not required but can help you avoid a big bill at tax time. The IRS website has calculators to help figure out how much to pay.

Been there! Last year I owed about $1,200 on my unemployment benefits. The payment plan option through the IRS was really helpful - they let me pay it off over 6 months with minimal fees.

Make sure you keep all your job search documentation too. While you can't deduct unemployment benefits, you might be able to deduct some job search expenses depending on your situation.

I had a friend who used that claimyr service someone mentioned earlier. She said it was a game changer for getting through to Washington ESD when she had questions about her 1099-G form. Apparently they had the wrong address and she needed to get it corrected before tax season.

Whatever you do, don't ignore it thinking it won't matter. The IRS will eventually catch up and you'll owe penalties and interest on top of the original amount. Better to deal with it upfront even if it means setting up a payment plan.

If you're using tax software like TurboTax or H&R Block, they'll walk you through entering the 1099-G info. It's really not that complicated once you have the form in hand.

One thing to remember is that if you had child support or other garnishments taken out of your unemployment benefits, you still need to report the full amount before garnishments. The 1099-G will show the gross amount.

I'm in a similar boat - received unemployment for most of 2024 and dreading tax time. At least we're not alone in this situation! Seems like a lot of people are dealing with the same thing.

If your total income including unemployment is low enough, you might qualify for free tax preparation through VITA (Volunteer Income Tax Assistance) programs. They're especially helpful with situations like unemployment benefits.

Just got my 1099-G from Washington ESD last week actually. Came pretty quickly after New Year's. Make sure your address is current in your ESD account so you don't miss it.

Bottom line - yes you need to report it, but it's not the end of the world. Lots of people deal with this every year and there are resources available if you can't pay everything at once. You've got this!