03/02/2021
Dept. Of Labor: Recent IRS Guidance on the 1099G Tax Form
CT DEPT. OF LABOR: RECENT IRS GUIDANCE ON THE 1099G TAX FORM
Benefits, Payments, and Identity Theft
(WETHERSFIELD, CT) - Connecticut Department of Labor (CTDOL) Commissioner Kurt Westby today highlighted Internal Revenue Service (IRS) guidance to assist filers in understanding the 1099G tax form. The tax form is issued by CTDOL to residents who received unemployment benefits or repaid unemployment benefits. All unemployment benefits are taxable and must be reported as income; the 1099G form is used to report unemployment income to state and federal tax entities. For some people who did not file for unemployment benefits, receiving the 1099G may indicate that their identity was used to file fraudulently for unemployment benefits.
Commissioner Westby said, “The agency has sent out more than 600,000 1099G forms to claimants and, as expected, there are questions—especially since many pandemic filers are new to the unemployment system. In addition, the six federal relief programs we implemented throughout the past year are also new to claimants. Just last week the IRS issued guidance for some people who have received 1099G forms to ensure they are only paying taxes on their actual income; we urge claimants to check our webpage for guidance.”
Residents who receive a 1099G form from the Connecticut Department of Labor fall into three main categories. Additional information is found on our website.
1. They received unemployment benefits (shown in box 2). All unemployment benefits are taxable income.
2. They paid back overpayments (shown in box 3). Overpayments result from any number of situations including an employee receiving back pay, an appeal on the claim, or an error on the application.
Some taxpayers find that a 2020 repayment has not been applied to their account and the 1099G reflects a balance owed as taxable income. In this case, CTDOL is urging claimants to follow IRS guidance “Repayment of unemployment compensation” pg. 27: If you received an overpayment of unemployment compensation in 2020 and you repaid any of it in 2020, subtract the amount you repaid from the total amount you received.
Repayments may not have been applied in 2020 due to any number of circumstances including when the payment was received, if it had supporting account information, and agency pandemic delays in applying overpayments to accounts.
3. Many residents discover they have been victims of identity theft when they receive a 1099G form. Residents who receive a 1099G but did not file for unemployment benefits should report this to the CTDOL immediately and use the resources on our fraud page to file with law enforcement, check their credit, and take steps to further protect their identity.
CTDOL urges claimants to follow IRS guidance outlined in their tax tips. In the case of ID theft, CTDOL will reissue a 1099 form after an examination of the account.
CTDOL launched a 1099G explainer video to assist claimants as well.
CTDOL sent 1099G forms to claimants in January. Claimants may also download the 1099G from their unemployment benefits account.
Customers with questions should visit the 1099G webpage and www.FileCTUI.com.
Media Contact:
CTDOL Communications Unit
200 Folly Brook Boulevard, Wethersfield, CT 06109-1114
Email: CTDOL.SocialMedia@ct.gov | http://www.ct.gov/dol