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The whole tax situation with unemployment is just another stress on top of already being unemployed. At least Washington doesn't have state income tax like some other states.
Bottom line: have the 10% federal withholding taken out unless you really need every dollar right now. It's much easier than dealing with a big tax bill later, especially when you might still be unemployed during tax season.
One more thing - if you're married and filing jointly, your unemployment benefits are still unearned income even if your spouse has earned income from working. Just in case anyone was wondering about that scenario.
Final summary for anyone scrolling through: Washington ESD unemployment benefits = unearned taxable income. Not earned income. This affects various programs and tax credits but you still need to report it as income where required.
One last tip - keep detailed records of all your earnings and hours worked. If Washington ESD ever questions your reported earnings, you'll want to have documentation to back up what you reported.
Thanks everyone for all the helpful info! I feel much more confident about how partial benefits work now. Going to make sure I report my earnings correctly going forward.
One last piece of advice - if you do apply and get approved, make sure you understand the weekly claim requirements. You'll need to file every week and report any work or earnings. Missing a week can cause delays in your benefits.
This has been a really helpful thread. I was in a similar situation and wasn't sure about applying. Now I feel confident enough to give it a try. Thanks everyone!
StarSurfer
Last thing - if you do get approved for partial benefits, remember that you'll still need to file your weekly claims every week and report any income. Miss a week and you could lose your benefits entirely.
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Sofia Torres
•What day do you have to file by each week?
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StarSurfer
•Weekly claims are typically due by Saturday for the previous week, but you can file them starting Sunday. Set a reminder on your phone so you don't forget!
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Ravi Malhotra
Good luck with your claim! Sounds like you have a solid case since your hours were cut involuntarily. The system exists to help people in exactly your situation.
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Sofia Torres
•Thanks so much everyone! I feel way more confident about filing now. Really appreciate all the advice and encouragement.
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