Washington ESD unemployment benefits - is unemployment taxable when filing 2025 taxes?

I haven't gotten my 1099-G yet, when should I expect it?

Washington ESD usually sends them out by the end of January. You can also access it online through your SecureAccess Washington account.

Common misconception! Unemployment insurance is considered taxable income by the IRS, unlike some other government assistance programs. You'll need to include it on your tax return.

well crap, guess im gonna owe money then since i never had anything withheld

How much does that cost? Seems like we shouldn't have to pay extra just to talk to Washington ESD.

I get the frustration, but after spending literally days trying to get through on my own, it was worth it to actually reach someone who could answer my questions about withholding.

How do I set up tax withholding if I need to file for unemployment again?

When you file your initial claim or during your weekly claim filing, there's an option to have 10% withheld for federal taxes. You can also change this setting later through your online account.

Yikes, that's exactly what I'm afraid of! Did you have to pay penalties too?

nah no penalties if you file on time, just had to pay the taxes owed

Good luck getting through to Washington ESD by phone though. I've been trying for weeks to ask about my claim status.

That's where services like Claimyr come in handy. I was skeptical at first but they actually got me through to a real person at Washington ESD when I needed to resolve an adjudication issue.

It depends on your total income and tax bracket, but yes, you'll owe federal taxes on that amount. Consider setting aside money for taxes if you're still collecting benefits.

wish someone had told me this when i first started collecting UI

Washington ESD does mention it in their literature, but it's easy to miss when you're focused on just getting benefits approved.

At least you found it! Some people wait forever for the mail version. The online portal is definitely faster.

Good find. Make sure to double-check that amount against your own records of weekly payments received.

Unemployment insurance is an earned benefit - you and your employer paid into the system while you were working. Food stamps (SNAP) are need-based assistance, which isn't taxable. That's the key difference.

Ah that makes sense, thanks for explaining it that way.

might have to try that, been trying to call for two weeks about my weekly claim being stuck

Yeah, it's frustrating how hard it is to reach them normally. The service made it pretty painless to actually talk to someone.

Thanks for the clear summary! This has been really helpful.

wish this info was more obvious when you first apply for benefits

Yes, all your normal tax credits and deductions still apply. The unemployment income just gets added to your other income to determine your total tax liability.

ok that helps, maybe it wont be as bad as i thought

yep that sounds about right, similar to what i owed. live and learn i guess

Good that you got professional advice. It's always better to know what you're dealing with ahead of time.

At least now you know for the future. And if you need to contact Washington ESD about withholding or other issues, remember that Claimyr option - saves a lot of headache trying to get through their phone system.