Washington ESD unemployment tax filing - how do I report benefits on my return?

Ugh, so basically I'm going to owe like $3,000+ in taxes? That's money I don't have right now.

Possibly, depending on your total income and tax bracket. You might want to look into payment plans with the IRS if you can't pay it all at once.

Good point, I'll double check that right now. How did you get it corrected?

Had to call Washington ESD multiple times to get a corrected 1099-G issued. Took forever to get through though.

I had the same problem with getting through to Washington ESD about my 1099-G. Spent hours on hold. Finally used Claimyr.com to get connected - they have this system that calls for you and gets you through to an actual agent. Saved me so much time and frustration.

Yes, it's been taxable since the 1980s. You can request a duplicate 1099-G from Washington ESD if you need it for filing.

well crap. how do i get another copy?

Log into your Washington ESD account online, you should be able to download a copy there.

Thanks, that's really helpful. I was wondering where exactly to put it in TurboTax.

Also make sure you enter it exactly as shown on the 1099-G. Don't round numbers or guess if something is unclear.

I made about $32,000 from my job before getting laid off, so with the UI that puts me around $50,000 total for the year.

That's still in the 12% federal bracket for single filers, so not terrible. State taxes in Washington are only on capital gains over $250k, so you won't owe state income tax on the unemployment.

How do you update your address with them? Is it on the SecureAccess Washington site?

Yeah, log into SAW and go to your profile settings. But honestly their system is so glitchy, I'd call to verify they actually updated it.

Calling Washington ESD is such a pain though. I used that Claimyr service someone mentioned earlier when I needed to verify my address change. Way easier than trying to get through their phone system myself.

Damn, I was hoping there might still be some kind of break for unemployment income.

Nope, that was a one-time thing. All unemployment is fully taxable now just like it was before the pandemic.

Great, so not only do I owe the taxes but I might get penalized for not paying them early enough? This system is ridiculous.

The penalty isn't huge but yeah, it's annoying. Next time you might want to have some federal taxes withheld from your UI benefits.

You can request tax withholding when you file your weekly claims. I think it's 10% federal and you can choose state withholding too if you live in a state with income tax.

Wait, the IRS audits unemployment claims? I thought that was just Washington ESD's thing.

They can audit anything on your tax return. If they question the unemployment income, they might ask for documentation that you were eligible to receive it.

I hope you're right. This is my first time dealing with unemployment taxes so I'm probably overthinking it.

Honestly if your situation is just W-2 income plus unemployment, it's pretty simple. Gets more complicated if you have self-employment income or other stuff.

Yeah Washington doesn't have state income tax except for that capital gains thing on really high earners.

Lucky you! I'm in Oregon and have to pay state taxes on my unemployment benefits too.

Definitely wasn't planning to hide it, just trying to make sure I do it right.

Smart. I've seen people get in trouble thinking unemployment isn't reported to the IRS. It absolutely is.

How do you set up a payment plan with the IRS?

You can do it online on the IRS website or include Form 9465 with your tax return. They're usually pretty reasonable about payment plans.

Just make sure you file your return on time even if you can't pay. The failure to file penalty is way worse than the failure to pay penalty.

I keep seeing people struggle with calling Washington ESD. That Claimyr thing I mentioned really does work - they have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. Basically they call for you and wait on hold, then connect you when they get through to a real person.

Wish I had known about that last year. Would have saved me hours of my life sitting on hold.

Good point. I did move in the middle of the year so I need to make sure everything matches up.

Also update your address with Washington ESD for next year so your 1099-G goes to the right place.