Washington ESD unemployment benefits - how much tax is withheld automatically?

Thanks! I don't remember seeing that option when I filed. Can I add tax withholding now that I'm already receiving benefits?

Yes, you can change your tax withholding election anytime by logging into your SecureAccess Washington account and updating your claim information.

Ouch! That's exactly what I'm trying to avoid. Did you have any penalties for not paying quarterly estimated taxes?

Luckily I had enough withheld from my part-time job to avoid penalties, but it was close. Definitely recommend having the 10% withheld if you can afford the smaller weekly payment.

Never heard of that service before. Is it legit or just another scam?

It's legitimate - they just help you get through to actual Washington ESD agents instead of sitting on hold forever. Worked great for me when I needed to update my claim info.

That sounds useful. I hate spending my whole day trying to call government offices.

How do you calculate what you should pay quarterly? I'm getting $400/week in benefits.

Use IRS Form 1040ES to calculate estimated payments. With $400/week ($20,800/year), you'd probably owe around $2,500-3,000 in federal taxes depending on your tax bracket.

Yes, unemployment benefits are considered taxable income by the IRS. You'll receive a 1099-G form from Washington ESD showing how much you received during the tax year.

well that sucks. already spent most of it on bills thinking it was free money

Same here. I learned from past mistakes of not having enough withheld from previous jobs.

That makes sense. Better to be safe than sorry when it comes to taxes.

Good advice. I keep screenshots of all my payment confirmations just in case.

You can also access your payment history anytime through the Washington ESD website if you need records.

Exactly right. If your weekly benefit amount is $300 and you elect 10% federal tax withholding, you'll receive $270 per week and $30 goes to the IRS.

Thanks for clarifying. That helps me decide whether I can afford to have it withheld or need the full amount now.

Yeah the site has been really glitchy for me too. Sometimes I have to try multiple times to submit my weekly claim.

This is another situation where Claimyr helped me out. When I couldn't get the website to work, I used their service to get connected to an agent who could make the change over the phone.

Good point. I'm working 15 hours a week and collecting partial unemployment. Need to make sure I'm covered on both ends.

Exactly. Your part-time job withholding might be calculated assuming that's your only income, so you could be under-withheld overall.

Thanks for that clarification. I was wondering if there were still any special tax rules for unemployment.

So for 2025, unemployment benefits are definitely taxable then. Got it.

That's risky though. Most people spend that money and then can't pay their taxes when they're due.

True, it requires discipline. But if you're behind on rent or utilities, having the extra $30-40 per week might be worth the risk.

3 hours?! That's insane. The phone system is so broken.

This is exactly why I started using Claimyr. Life's too short to spend entire days on hold with government agencies.

That's a good point I hadn't considered. Could affect things like the Earned Income Tax Credit.

Exactly. It's worth running the numbers with a tax calculator to see your full tax picture before deciding on withholding.

It's completely optional. You can choose to have 10% withheld, or choose not to have any taxes withheld. Washington ESD doesn't require it.

Perfect, thanks. I think I'll elect to have it withheld to avoid any surprises at tax time.

How much are the penalties usually?

It varies but it's typically around 0.5% per month of the unpaid tax. Can add up over a full year.

That makes sense. Unemployment benefits are taxed just like a paycheck, so treating them the same way with withholding is probably smart.

Thanks everyone for all the helpful info. I'm definitely going to elect tax withholding when I log in later today.

Interesting point. So the benefits would be taxable in whatever state you're living in when you receive them?

Generally yes, though it can get complicated. Worth checking with a tax professional if you're planning to move while collecting benefits.

Great to hear! I'm going to do the same thing right now. Thanks for confirming it works.

Good reminder that sometimes the website does work fine. Probably depends on what time of day you try to access it.