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wait so does this mean the tax withholding is still being reported correctly on our 1099-Gs for tax purposes? i don't want any issues when i file my taxes next year
Yes, your 1099-G will be completely accurate. The "intercept" label is just for the internal ESD payment display - it has nothing to do with how the data is coded when sent to the IRS. Your 1099-G will correctly show your total benefits and the amount withheld for federal taxes. No need to worry about your tax filing!
I had thsi exact same question last month when i started getting benefits! Asked my friend who works at a bank and she said its nothing to worry about just dumb governmetn labeling. She said intercepts dont show up on your credit report anyway unless they're actual garnishments for things like defaulted student loans or something. Tax withholding definitely doesnt affect your credit either way.
If you're on the edge of qualifying, sometimes it helps to precisely calculate your earnings deduction. The 75% rule means you can earn up to 133% of your weekly benefit amount before benefits zero out completely. In your case, with a $312 weekly benefit, you could earn up to about $416 and still receive some partial benefit. At $420, you're just barely over the threshold. If your hours were reduced even slightly (like 19.75 instead of 20), you might qualify for a small amount.
I swear ESD's system is designed to make everything as difficult as possible! Had to change my direct deposit last year and somehow ended up with TWO payments - one to each account! Then they hit me with an overpayment notice six months later. Still fighting it...
Just to follow up on what everyone's saying - I think the key is timing. Don't make any changes to your direct deposit info on the day before or the day of your regular payment processing. The system needs time to update, and if you try to change things while a payment is being processed, that's when problems seem to happen. Good luck!
For tax purposes: If the original benefits were reported on a previous year's taxes, you should check with a tax professional, but generally refunded overpayments should be reported as income in the year you receive them (2025 in your case). However, you might be able to file an amended return for the original year instead. The ESD letter should provide some guidance on this too.
my advice: screenshot EVERYTHING from your eservices account related to this. save the letters. take photos of envelopes. document it ALL. ESD has "lost" my records before and tried to say i owed money i'd already paid. its rare but it happens
This is excellent advice. I always tell people to keep unemployment documentation for at least 5 years because errors can pop up long after you think everything is resolved. Take screenshots of your eServices account balance showing zero, save PDFs of all notices, and keep your bank statements showing the refund deposit.
Logan Stewart
Quick update on current timelines - I'm a volunteer at WorkSource and we're seeing OAH appeals averaging about 9 weeks total right now (early 2025). That's a bit faster than the 12+ weeks we were seeing last year. Make sure your contact information is current in both your eServices account AND with OAH directly (they're separate systems).
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Haley Bennett
•Thanks for the update! I'll double check all my contact info is current. 9 weeks is still a long time but at least it's better than 12+.
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Douglas Foster
btw did u know u can check ur appeal status online? go to oah.wa.gov and click on "check appeal status" - u need ur case # which should be in the confirmation email u got when u filed the appeal.
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Haley Bennett
•I didn't know that! Thank you so much - I just checked and it shows my appeal has been received but not assigned to a judge yet. At least now I have a way to track it!
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