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Unemployment benefits are taxable income reportable to the Internal Revenue Service (IRS) under federal law. You must report all unemployment benefits you receive to the IRS on your federal tax return.
If you are receiving benefits, you may have federal income taxes withheld from your unemployment benefit payments. If you ask us to withhold taxes, we will withhold ten percent of the gross amount of each payment before sending it to you.
To start or stop federal tax withholding for unemployment benefit payments while you are receiving benefits, complete and return TWC’s federal tax withholding form.
Each January, we mail an IRS Form 1099-G to individuals we paid unemployment benefits during the prior calendar year. The 1099-G form provides information you need to report your benefits. Use the information from the form, but do not attach a copy of the 1099-G to your federal income tax return because TWC has already reported the 1099-G information to the IRS. You can file your federal tax return without a 1099-G form, as explained below in Filing Your Return Without Your 1099-G.
A 1099-G form is a federal tax form that lists the total amount of benefits TWC paid you, including:
When you report the unemployment benefits we paid you:
For more information on how to report unemployment benefits on your federal income tax return, see the IRS Instructions or consult the IRS or a tax professional.
The amount we list on your 1099-G includes any overpaid benefits. We report the total amount of benefits we paid you in the previous calendar year, regardless of whether you repaid any overpayment.
If you repaid part or all of an overpayment, the IRS allows you to deduct the repaid amounts on your income tax return. For more information on deducting an overpayment on your tax return, see the IRS Instructions or contact the IRS or a tax professional.
You can file your federal tax return without a 1099-G form as long as you know:
You do not need to attach the 1099-G form to your federal income tax return. If you are required to file a state income tax return, you may need to attach a copy of the 1099-G to your state return. Check your state’s instructions on how to complete the state income tax return.
Some professional tax preparers may require a paper copy of your 1099-G form when completing your federal tax return for you.
The Getting IRS 1099-G Information section below tells you how to find the total amount of benefits we paid you, online or by phone.
Find the total benefits TWC paid you last year and the amount of federal taxes we withheld, online or by phone.
Beginning January 15, you can find your payment and tax information through Unemployment Benefits Services:
View a tutorial on how to check your IRS 1099-G information online.
Beginning January 15, you can call Tele-Serv to hear the amount of benefits TWC paid you last year and amount of any taxes withheld.
Select option 2 and follow the prompts.
If you do not receive your Form 1099-G by February 1, and you received unemployment benefits during the prior calendar year, you may request a duplicate 1099-G form by phone:
We cannot process requests for duplicate 1099-G forms until after February 1 because throughout January we are still mailing the original forms.
You do not need a paper copy of Form 1099-G to file your federal tax return; the IRS only needs the total amount of benefits TWC paid you during the previous calendar year and the amount of taxes withheld.
If you do not receive your 1099-G for the prior calendar year by February 1, we may not have your correct address. You can change your address and then request that we mail a duplicate 1099-G form by completing the following steps.
Your 1099-G will show the amount we paid you, even if you received less than that total amount due to:
The amount may be the total of benefits from more than one claim.
The amount is based on the payment date, not the period covered by the payment request.
We cannot change amounts reported on any 1099-G form.
You can view a history of your unemployment benefit payments on Unemployment Benefits Services by selecting Claim and Payment Status. If you received benefits from more than one claim during the calendar year, you must view each claim separately.
The Earned Income Tax Credit (EITC) is a refundable federal income tax credit for low- to moderate-income working individuals and families. For more information, see the IRS web page on the Earned Income Tax Credit.
The IRS offers free services to help you with your federal tax return. Free File is a service available through the IRS that offers free federal tax preparation and e-file options for all taxpayers. Free File is available in English and Spanish. To learn more about Free File and your free filing options, visit www.irs.gov/uac/free-file-do-your-federal-taxes-for-free.
If you are required to file a state income tax return in the state where you reside, you may need to attach a copy of your 1099-G form to your state return. Check your state’s instructions on how to complete the state income tax return.