Washington ESD unemployment benefits - what line does it go on 1040 tax return?

Thanks! So it's just line 7 and I enter the full amount from box 1 on the 1099-G?

Exactly. The IRS considers all unemployment compensation taxable income unless you had taxes withheld, which would show in box 4 of your 1099-G.

Unemployment has always been taxable income. There was a temporary exclusion for $10,200 in 2020 only, but that ended. All unemployment benefits from 2021 forward are fully taxable.

oh crap, nobody told me that when i filed my UI claim with Washington ESD

You can download it from your Washington ESD account online. Log into your SecureAccess Washington (SAW) account and look for tax documents. They stopped mailing them automatically a few years ago.

I've been trying to get into my Washington ESD account for weeks but keep getting error messages. The phone lines are always busy too.

If you're having trouble reaching Washington ESD, you might want to try Claimyr. It's a service that helps people get through to ESD agents. I used it last month when I couldn't reach anyone about my claim status. Check out claimyr.com - they have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works.

Good point. I think I had them withhold 10% but I need to check my 1099-G to be sure.

I didn't have any taxes withheld and now I owe a bunch. Should have elected to have them take out taxes when I filed my weekly claims.

Job search expenses are generally not deductible anymore since the tax law changes in 2018. There are some exceptions for certain professions but most people can't deduct them.

That sucks. I spent like $500 on interview expenses while I was on Washington ESD benefits.

The overpayment you paid back can be deducted as a repayment of income if it's over $3,000. You'd use Form 1040X to amend your 2023 return or claim it as a deduction in 2024, whichever gives you more benefit.

It was $4,200 so I think I qualify. This is getting complicated though.

You might want to consult a tax professional for overpayment situations. The rules can be tricky with the timing and which year to claim the deduction.

Washington state has no state income tax, so unemployment benefits are only taxable at the federal level. You only need to worry about reporting it on your federal 1040.

That's what I thought but wanted to double check. Thanks!

Always use the amount on the 1099-G for your tax return. That's the official record that Washington ESD sent to the IRS. If you think there's an error, you need to contact ESD to get a corrected 1099-G.

I've been trying to reach someone at Washington ESD for two weeks about this but can't get through.

This is exactly why I used Claimyr when I had issues with my claim. Their service connects you directly with ESD agents without the usual wait times. Really helped me get my 1099-G issue resolved quickly.

Yes, all unemployment benefits are taxable regardless of the amount. Even $800 needs to be reported on line 7 of your 1040. Washington ESD should have sent you a 1099-G for any amount over $10.

Okay, I'll look for that 1099-G then. I might have missed it in the mail.

Yes, you'll need to file Form 1040X to amend your return and include the unemployment income. The IRS will eventually catch this since they get a copy of your 1099-G from Washington ESD.

How much trouble am I in? It was about $3,000 in benefits.

You'll likely owe additional taxes plus interest, but as long as you amend the return promptly, you shouldn't face penalties for honest mistakes.

Correct. If you received benefits from Washington ESD, then Washington is the issuing state. The software needs this to properly categorize the income.

Thanks, that's what I thought but the interface was confusing me.

Yes, you need to report unemployment benefits from all states. You should have received separate 1099-G forms from both California and Washington ESD. Report the total on line 7 of your federal return.

Got it. I have both 1099-G forms so I'll add them together.

Box 1 is your taxable unemployment compensation - that's what goes on line 7 of your 1040. Box 2 is state income tax withheld (not applicable in Washington), and box 4 is federal tax withheld if you elected to have taxes taken out.

So I only care about box 1 and maybe box 4? The other boxes don't matter for my taxes?

That's right. For Washington residents, you only need boxes 1 and 4. Box 1 is your income, box 4 is taxes already paid if any.

You'll get a 1099-G for 2025 since that's when you actually received the benefits. The 1099-G is based on when benefits were paid, not when you became unemployed.

That makes sense. So I won't have anything to report for 2024 taxes regarding unemployment.

The $10,200 exclusion was only for 2020 tax year. Starting with 2021 and continuing forward, ALL unemployment benefits are fully taxable. There's no exclusion anymore.

Darn, I was hoping that was still a thing. Thanks for clearing that up.

Yeah, I made that same mistake when I was trying to figure out my taxes. All unemployment from Washington ESD is taxable now.

Union dues are generally deductible as unreimbursed employee expenses, but the rules changed in 2018. For most people, these expenses are no longer deductible unless you're in specific professions.

I'm in construction, does that make a difference?

You should double-check with your accountant about the specific rules for your situation. Some trade union members may have different deduction rules.

Same here! I eventually found out about Claimyr through a friend. It's a service that helps you get connected to ESD agents without the endless hold times. Wish I'd known about it sooner.

How does that work? Do they just call for you?

They have some system that gets you through to an actual person. You can check it out at claimyr.com - they have a demo video that explains how it works.

Yes, report your W-2 income on the wages line and your unemployment benefits on line 7. They're separate types of income even though you may have received them during the same period.

Perfect, that's what I was thinking but wanted to confirm. Thanks!

Same here! I'm feeling much more confident about filing my taxes now. Line 7 on the 1040 with the amount from box 1 of the 1099-G - got it!

Glad this helped everyone. Tax season is stressful enough without having to figure out where everything goes on the forms.