What if I already paid taxes on unemployment - Washington ESD refund question

I did get the 1099-G but I guess I didn't understand that the withholding might not be enough. So there's no way to get additional money back from Washington ESD?

No, Washington ESD just acts as a middleman for the withholding. They send what you requested to the IRS on your behalf. The actual tax calculation happens when you file your return.

Exactly! It's so frustrating. Did you end up just paying the extra amount?

yeah had to set up a payment plan with the IRS. wish someone had explained this better when I was filing my weekly claims

That makes sense. I did have some part-time work income too. I wish there was a way to calculate the right withholding amount ahead of time.

You could use the IRS withholding calculator online or consult a tax professional. For future unemployment claims, you might want to set aside additional money for taxes beyond what Washington ESD withholds.

I had the same problem until I found Claimyr.com - they help you get through to Washington ESD agents by phone. I was able to get my 1099-G questions answered within a few days. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works.

Really? I've been trying to call for weeks. How does that service work exactly?

They basically handle the calling process for you and connect you directly with an Washington ESD agent when one becomes available. Way better than sitting on hold for hours or getting disconnected.

Because the withholding is just an estimate. Think of it like having taxes taken out of a regular paycheck - sometimes you get a refund, sometimes you owe more when you file your return.

Oh I see. So unemployment taxes work the same way as regular job taxes. That actually makes sense now.

Yeah it's really misleading. I feel like they should warn people that the withholding might not be enough.

To be fair, Washington ESD can't predict your total tax situation since they don't know about your other income sources. The withholding is just a convenience option.

Yes, you can update your withholding preferences in your Washington ESD account online. You can start or stop withholding, or change the amount for future payments.

Good to know! I'll log in and adjust mine. Thanks for the info.

That's probably the smarter approach. How much did you set aside percentage-wise?

I put away about 15% of each payment, which ended up being pretty close to what I actually owed. Depends on your tax situation though.

Agreed! I would have prepared differently if I had understood how it actually works.

That's a helpful way to think about it. I guess I was treating it more like a separate thing rather than regular income.

Exactly. For tax purposes, unemployment is just another form of income that gets added to everything else you made during the year.

I keep seeing people mention that service. Is it worth it for tax-related questions?

For me it was. I needed to get a corrected 1099-G and was able to speak with someone at Washington ESD within a day instead of waiting weeks trying to get through on my own.

How do you calculate quarterly payments? That sounds complicated.

You can use IRS Form 1040ES to calculate estimated payments. It's not too bad once you get the hang of it.

At least you got money back! I'd rather have too much withheld than owe more.

True, but it was like giving the government an interest-free loan for months. Would have been better to have that money available when I needed it.

100% agree. I thought having them withhold taxes would take care of everything.

They do mention it in the application process, but it's easy to miss among all the other information. More emphasis would definitely help.

That's what I was afraid of. So basically I just have to pay the extra amount I owe?

Right, or set up a payment plan with the IRS if you can't pay it all at once. Washington ESD is just the middleman for the withholding.

Yeah that's probably the safer approach. How much extra do you usually save?

usually another 5-10% on top of what they withhold, depending on what other income i have

Good point. I'll double-check my tax return to make sure I claimed the withholding correctly.

Yeah, it should be in Box 4 of the 1099-G form. That amount gets credited toward your tax liability when you file.

I might have to try that. I still have some questions about my 1099-G form that I haven't been able to get answered.

It's worth it if you need specific answers about your account. They connect you directly with Washington ESD agents who can look up your records.

Thanks everyone for explaining this. I understand now that I'll just need to pay the additional amount I owe and maybe plan better for next time.

You're welcome! It's a common confusion. Consider speaking with a tax professional if you expect to be on unemployment again - they can help you plan the withholding better.