These are the numbers you need to report on your tax return. In Box 4, you'll see the amount that was withheld for federal taxes, if any. You can quickly find the amount your state paid to your name in unemployment benefits in 2020 by looking at Box 1 on Form 1099-G. If you get Form 1099-G in the mail with your name on it reporting unemployment benefits you did not receive, then it's likely fraud. However, there is a temporary $10,200 exclusion for many Americans.įraudsters will often use another person's name and address to file a claim, but include a bank account they have access to to collect the money. Generally unemployment income is taxable at the federal level, so you have to report it on your tax return. At tax time, states mail Form 1099-G (Certain Government Payments) to the address associated with a claim, or make the form available online, so the taxpayer can report the income on their tax return. People apply for benefits through their state government and get paid by the state. Unemployment insurance is a joint state-federal government program. While many of those claims have come from people trying to recoup lost income and stay above water, not all of them are legitimate. Unfortunately, that meant go time for would-be fraudsters.Īround 76 million claims for unemployment have been made since last March.

Tens of millions of Americans lost their jobs or reduced their work hours in 2020 because of the coronavirus pandemic.

Unemployment benefits tax form