Washington ESD unemployment benefits - does tax unemployment benefits affect my return?

Thanks! I did get that 1099-G form. Do I need to pay taxes on the full amount or is there some kind of deduction?

You'll report the full amount as income, but you may have had taxes withheld if you elected that option when filing your weekly claims.

How do I check if taxes were withheld? I don't remember making that choice when I was filing my weekly claims.

Log into your Washington ESD account and look at your payment details. If you had 10% withheld for federal taxes, it should show there.

Never heard of that service. Is it legit? I've been trying to call Washington ESD for weeks about my 1099-G.

Yeah it worked for me. I was stuck in the same phone loop you probably are. The service basically helps you get through the busy signals and connects you to a real person.

This is why I always elect to have taxes taken out. Better safe than sorry come tax time.

I wish I had known this when I was filing my weekly claims. Now I'm worried I'm going to owe a bunch of money.

Ouch, $800 is a lot. I really hope I elected to have taxes withheld but I honestly can't remember.

You can always check your old weekly claim confirmations if you saved them. They usually show if you elected tax withholding.

I stayed in Washington the whole time, so I guess I don't have to worry about state taxes. That's one less thing to stress about.

Good luck getting through to them on the phone though. I tried for literally weeks last year.

That's why services like Claimyr exist I guess. Sometimes you gotta pay a little to save your sanity when dealing with government agencies.

I was planning to use TurboTax. Hopefully it makes it easy to enter the unemployment info.

Yeah TurboTax handles it well. Just make sure you enter the amounts exactly as they appear on your 1099-G.

No, that was only for 2020 unemployment benefits and it was a one-time COVID relief measure. For 2024, all unemployment benefits are fully taxable.

Darn, I was hoping that was still available. Thanks for clarifying.

Good point. I'll make sure to save everything in a tax folder.

The 1099-G shows the total gross amount before any deductions. If you had union dues or other deductions taken out, your actual deposit would be less than what's on the form.

That makes sense. I did have some deductions so that probably explains the difference.

You'd need to contact Washington ESD to get a corrected 1099-G issued. Don't just adjust the numbers yourself on your tax return.

This is another situation where Claimyr could help you get through to Washington ESD quickly to resolve the issue. Tax season deadlines don't wait for government phone systems.

Thanks for the heads up. I really need to check if I had taxes withheld or I might be in for a surprise.

Better to know now than be shocked when you file. Check your Washington ESD account or call them to verify.

There aren't specific deductions for unemployment income, but you might qualify for other credits based on your overall income level. The Earned Income Tax Credit has different thresholds that might help.

I'll look into that. Every little bit helps when you're dealing with an unexpected tax bill.

Definitely learned my lesson on this one. I'll remember that for the future.

Live and learn! At least now you know what to expect and can plan accordingly.

Exactly. I waited too long last year and ended up having to file an extension because I couldn't get my unemployment tax documents sorted out in time.

That's why I mentioned Claimyr earlier. Sometimes you need to use every tool available to cut through the bureaucracy and get things done on time.