Washington ESD unemployment benefits not taxable what year - need help with taxes

Thank you! So if I got $15,000 in Washington ESD benefits in 2020, only $10,200 would be tax-free and I'd still owe taxes on the remaining $4,800?

Exactly right! And if you already filed your 2020 taxes before this law passed in March 2021, you might be eligible for a refund from the IRS.

Unemployment benefits are normally taxable income, but 2020 was a special exception due to COVID relief legislation. You were right to pay taxes on benefits from other years.

How does that work exactly? I've been trying to reach Washington ESD for weeks about my 1099-G form.

It basically calls Washington ESD for you and waits in the queue, then connects you when an agent picks up. Saved me hours of trying to get through myself.

Good to know! So 2021 benefits are back to being fully taxable income then?

Yes, 2021 and beyond are fully taxable again. The tax exclusion was a one-time thing for 2020 only.

You should check if you got an automatic refund from the IRS. They processed millions of automatic refunds for people in your situation, but some fell through the cracks.

how do i check that?? my tax guy moved and i dont know where to start

You can check your IRS account online or call them. If you didn't get an automatic refund, you might need to file an amended return for 2020.

You might still be able to claim the refund if you act quickly. The IRS extended some deadlines related to the unemployment tax exclusion.

If you have your 1099-G forms from Washington ESD and reported the income correctly for each year, you should be fine. The tax exclusion for 2020 was automatic for most people.

same boat here, got benefits both years and my taxes are a mess. wish there was better guidance from washington esd about this stuff

What if I never got my 1099-G form? I moved and think it got lost in the mail.

You can log into your Washington ESD account online to download it, or request a replacement. Just make sure your address is updated first.

If you can't get through to Washington ESD online or by phone, that Claimyr service I mentioned earlier can help you reach an agent to request replacement tax documents.

Wait, so married couples could exclude up to $20,400 total?

Correct, as long as both spouses qualified and both had unemployment income. The income limits still applied though - $150,000 AGI limit.

If your AGI was under $150,000, you should have been able to exclude that entire $8,000. Check if you got an automatic refund, and if not, consider filing an amended return.

how long do i have to file an amended return?

Generally 3 years from the original due date, so you still have time for 2020. But don't wait too long.

The IRS automatic refunds weren't always perfect. You can request a transcript of your account to see exactly what adjustments were made.

The federal exclusion was separate from state taxes. Since Washington has no state income tax, Washington ESD benefits aren't taxed at the state level anyway. If you moved to a state with income tax, you'd need to check their specific rules.

Yes! I keep getting notices that don't make sense. I think there are still system glitches on the IRS side.

If you need to talk to someone at the IRS about ongoing issues, that calling service I used for Washington ESD (Claimyr) might work for IRS calls too, though I'm not sure about that.

Thanks for the reminder. It's easy to get confused with all the different COVID-related tax changes.

Good advice. I'm going to dig up my old 1099-G forms and make sure everything matches what I reported.

Smart move. Better to be safe than sorry when it comes to taxes and unemployment benefits.