Can you get unemployment benefits from NYS Department of Labor if you owe back taxes?
I just got laid off from my job at a warehouse and need to file for unemployment benefits. Problem is I owe about $2,800 in back taxes from 2022 that I haven't been able to pay yet. Will this prevent me from getting approved for UI benefits through NYS Department of Labor? I heard somewhere that they might offset your benefits if you owe money to the state but I'm not sure if that's true. Really stressed about this because I need the income to cover rent while I look for work.
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Elijah Jackson
You can still file and receive unemployment benefits even if you owe back taxes. NYS Department of Labor doesn't check your tax debt status when determining eligibility for UI benefits. However, the state may intercept your unemployment payments to offset what you owe through the Treasury Offset Program. You should still file your claim immediately - don't let tax debt prevent you from applying for benefits you've earned.
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Isabella Martin
•Thank you! So I can still get approved but they might take some of the money to pay my tax debt? How much would they typically take?
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Sophia Miller
same situation last year, they took like 15% of my weekly benefits to pay back taxes i owed. still got most of my money though
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Mason Davis
•Wait they can just take money from your unemployment without telling you? That doesn't seem right, shouldn't they have to notify you first?
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Mia Rodriguez
The offset process is handled by different agencies. NYS Department of Labor processes your unemployment claim based on work history and reason for separation. If you're eligible, you'll be approved. The tax offset happens separately through the state's collection system. You should receive notice if they plan to intercept your benefits. I'd recommend calling both the tax department and NYS Department of Labor to understand your specific situation.
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Isabella Martin
•Should I mention the tax debt when I file my unemployment claim or just not bring it up?
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Mia Rodriguez
•Don't volunteer that information during your unemployment application. Answer the questions they ask honestly, but the tax debt isn't relevant to your UI eligibility determination.
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Jacob Lewis
If you're having trouble reaching NYS Department of Labor about this or any other unemployment questions, I had success using Claimyr (claimyr.com) to get through to an actual agent. They have a system that navigates the phone tree and waits on hold for you. There's a video demo at https://youtu.be/qyftW-mnTNI that shows exactly how it works. Really helped when I needed to clarify my claim status.
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Amelia Martinez
•How much does something like that cost? Seems like it might be expensive for someone who's already unemployed.
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Jacob Lewis
•It was worth it for me to get answers quickly rather than spending hours trying to call. Much less stressful than the usual NYS Department of Labor phone nightmare.
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Ethan Clark
just file your claim and worry about the tax thing later!!! you need money now and unemployment is something you paid into while working. the worst they can do is take some of it but you'll still get something
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Amelia Martinez
I think this is pretty common actually. The state wants to collect what they're owed but they also know people need unemployment benefits to survive. File your weekly claims on time and keep job searching - that's what matters for staying eligible.
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QuantumLeap
I went through this exact situation a few years ago when I owed the state about $3,200 in back taxes. You can definitely still file and get approved for unemployment benefits - the tax debt won't disqualify you from receiving UI. What happened in my case was they offset about 25% of my weekly benefit amount to pay down the tax debt, but I still received the majority of my benefits. You should get a notice explaining the offset once it starts. The most important thing is to file your claim right away since there's a waiting period, and don't let the tax issue delay you from applying for benefits you've earned through your work history.
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Asher Levin
•That's really helpful to know someone else went through this! 25% seems like a lot but I guess it's better than getting nothing at all. Did they give you any advance notice before they started taking the money, or did it just show up as a reduced payment one week?
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Lily Young
•I received a notice in the mail about 2 weeks before the offset started, so there was some advance warning. The notice explained how much they would be taking and gave contact information if I wanted to set up a different payment arrangement. Even though 25% sounds like a lot, it was actually better than I expected - I thought they might take half or more. The key thing is you'll still get the majority of your benefits while they work down your debt. Don't stress too much about it, just get your application filed ASAP!
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Ravi Gupta
I had a similar experience but with federal taxes owed. The unemployment office processed my claim normally and I got approved based on my work history. About a month later I started receiving notices that they were intercepting part of my benefits for the tax debt. In my case they took about 20% each week until the debt was paid off. The good news is you still get most of your money and they can't take 100% - they have to leave you enough to live on. Definitely file your claim immediately though, don't wait because of the tax issue. You earned those benefits through your payroll contributions when you were working.
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Mateo Gonzalez
•That's reassuring to hear they can't take everything! I was worried they might leave me with nothing. 20% sounds more manageable than I was expecting. Quick question - when you say they can't take 100%, is that actually written into law somewhere or just their policy? I want to make sure I understand my rights in case something goes wrong with the offset amount.
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Samuel Robinson
I'm in a similar boat right now - just lost my job last week and also owe back taxes from 2021. Reading through these responses is really reassuring! It sounds like the key takeaway is that owing taxes won't prevent you from getting approved for unemployment, but they may take a portion to pay down what you owe. From what everyone's saying, it seems like 15-25% is pretty typical for the offset amount. The most important thing seems to be filing your claim right away since there are waiting periods involved. I'm definitely going to apply tomorrow morning - thanks everyone for sharing your experiences!
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Sean Doyle
•Good luck with your application! One thing I'd add is to make sure you keep all your documentation from the unemployment office and any notices you get about the tax offset. It helps to have everything in writing in case there are any issues with the amounts they're taking or if you need to dispute anything later. Also, even though they'll be taking some money for your back taxes, you're still making progress on paying that debt without having to come up with a lump sum while you're unemployed. It's actually not a bad way to handle it when you think about it that way!
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Miguel Diaz
I'm new to this community but wanted to share what happened when I was in a very similar situation last year. I owed about $3,100 in back taxes and was terrified about applying for unemployment after being laid off. Everyone here is giving great advice - you absolutely can and should file your claim right away! The tax debt won't disqualify you from receiving benefits. In my case, they intercepted about 22% of my weekly payments to cover the back taxes, but I still received the majority of my benefits. The offset didn't start immediately either - I think it was about 3-4 weeks after my first payment. I received written notice explaining exactly how much they'd be taking and for how long. It was actually a relief because I was making progress on the tax debt without having to stress about finding a lump sum while unemployed. Don't let the tax situation delay your application - file as soon as possible!
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Layla Mendes
•Welcome to the community! Your experience is really helpful and mirrors what others have shared. It's good to know that the offset doesn't start immediately - that gives some breathing room to get settled into the unemployment routine. The 22% you mentioned seems right in line with what everyone else experienced (15-25% range). I appreciate you mentioning that you got written notice explaining everything clearly. That detail helps ease some of the anxiety about the unknown. It's also a great point about making progress on tax debt without needing a lump sum - that's actually a pretty manageable way to handle it when you're between jobs. Thanks for taking the time to share your story as a newcomer!
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QuantumQuest
I went through this same situation about 6 months ago when I got laid off from my retail job. I owed around $2,200 in back taxes and was really worried about filing for unemployment. Everyone here is absolutely right - you can definitely still get approved for benefits even with tax debt! In my case, they started offsetting about 18% of my weekly benefit amount after about 5 weeks. I got a clear notice in the mail explaining exactly what was happening and how long it would take to pay off my debt through the offsets. The process was way less scary than I thought it would be. The most important thing is to file your claim immediately - every day you wait is money you're potentially losing out on. The unemployment system and tax collection system are separate, so don't let one delay the other. You've earned these benefits through your work, so go ahead and apply right away!
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