How to Report Your Unemployment Benefits to the IRS

Information Needed to File Taxes

The Texas Workforce Commission (TWC) mails Internal Revenue Service (IRS) Form 1099-G to claimants who were paid unemployment benefits in 2011. TWC mails 1099-G forms throughout January 2012.

To file your federal taxes, you need to:

• Report the amount of benefits TWC paid you on the designated line of your income tax return. (See IRS Instructions for reporting benefits on your specific return).
• Enter TWC’s Federal Employer ID Number, 74-2764775, on your tax return.

You do not need the 1099-G form to complete your federal income tax return.

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Getting IRS 1099-G Information

Get the total benefits TWC paid you in 2011 on the Internet or by telephone.

Internet Instructions

Beginning January 13, 2012, you can log on to Unemployment Benefits Services to see the amount of benefits TWC paid you last year. Select IRS 1099-G Information.

1. Go to Unemployment Benefits Services and select IRS 1099-G Information.
2. Log on using your User ID and password.
3. Select IRS 1099-G Information from the Quick Links menu.

Telephone Instructions

Beginning January 13, 2012, you can call Tele-Serv to hear the amount of benefits TWC paid you last year.

Beginning February 1, 2012, you can call Tele-Serv to request a duplicate Form 1099-G.

1. Call Tele-Serv at 800-558-8321.
2. Select option 2 and follow the prompts.

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Requesting a Duplicate 1099-G Form

If you do not receive your 1099-G by February 1, 2012, TWC may have an incorrect address on file. You can change your address then request a new form be mailed to you by completing the following steps.

1. Log on to Unemployment Benefits Services, select My Contact Information from the Change My Profile menu, and update your address.
2. Call Tele-Serv at 1-800-558-8321 and select option 2 to request a duplicate Form 1099-G. Enter your Social Security number and follow the prompts. Make sure that TWC has your correct address before you request a duplicate form.

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Reporting Your Unemployment Benefits to the IRS

When reporting the total amount of unemployment benefits TWC paid you:

• Enter the amount of benefits you are required to report in Line 19 of IRS Form 1040, (see IRS Instructions, page 28) or Line 3 of IRS Form 1040EZ.
  • The amount listed on the 1099-G includes any overpaid benefits. TWC reports the total amount of benefits TWC paid you in the previous calendar year, regardless of whether you repaid any overpayment. If you repaid some or all of an overpayment, please contact the IRS or your tax professional for assistance.
• Enter the TWC Federal ID number as 74-2764775.

If you have repaid part or all of an overpayment, the IRS allows you to report and deduct the repaid amounts on your income tax return. For more information on deducting an overpayment on your tax return, consult IRS Publication 17 (2010), Your Federal Income Tax. Click Repayment of unemployment compensation. Or call the IRS toll-free 800-829-3676 to order a copy of Publication 17.

For more information on how to report unemployment benefits on your federal income tax return, see the IRS Instructions, or consult your local IRS office or tax professional.

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Frequently Asked Questions

What is an IRS Form 1099-G (Certain Government Payments)?

An IRS Form 1099-G is a federal tax form that lists the total amount of unemployment benefits TWC paid an individual in a calendar year. The 1099-G reports the following:

• Unemployment benefits (regular and federal extended benefits)
• Federal income tax withheld from benefits
• Child support payments deducted from an individual's benefits
• ATAA/RTAA payments

What if I disagree with the amount of benefits TWC listed on the 1099-G for the prior year?

If you believe that the amount shown on Form 1099-G is wrong, remember that TWC must report the total amount we paid you. TWC cannot change the 1099-G.

TWC is required to report the total amount of benefits paid to you in the prior calendar year, regardless of whether you received benefits from more than one claim or if that amount includes delayed payments, voided payments, or overpayments that you repaid to TWC.

The amount on the 1099-G cannot be adjusted for situations such as:

• If you repaid benefits to TWC, either all or part, due to an overpayment.
• If TWC absorbed or withheld benefits to reduce an overpayment.
• If unemployment debit card payments TWC issued to you were later voided because you did not activate the debit card within one year of the deposit.
• If benefits issued in 2010 were canceled in 2011.

In these situations, the 1099-G shows the correct amount of benefits because it shows the amount that TWC paid to you, even if you received less than the total amount because of an overpayment, repayment, voided payment, or other change to the claim.

Example: A claimant has an overpayment in March 2011 and repaid it in November 2011. TWC cannot deduct the amount of the overpayment on IRS Form 1099-G because it is part of the total amount of benefits paid to the claimant in calendar year 2011. Claimants may be able to adjust their tax returns to show the amount repaid to TWC. However, TWC cannot change the 1099-G because the total amount of benefits paid the claimant is correct. The 1099-G does not show the amount of benefits a claimant paid back to TWC.

In addition, you may disagree with the amount reported on the 1099-G if you forgot about payments you received in 2011 because:

• TWC issued the benefits payments early in 2011.
• The reported amount included delayed payments issued for a prior claim.

Example: You submitted payment requests for weeks in 2010 but TWC issued the payment in 2011. TWC must report the income when we paid the benefits, not when you requested the payment.

You can view a history of your UI benefits payments on Unemployment Benefits Services by selecting Claim and Payment Status. If you received benefits from more than one claim, you will view each claim separately.

How can I file a federal tax return without a copy of IRS Form 1099-G?

You can file your federal tax return without IRS Form 1099-G as long as you know the total amount of benefits TWC paid you, the amount of federal taxes withheld (if any) during the previous year, and TWC’s Federal Employer ID Number 74-2764775.

Note: Some professional tax preparers may require a paper copy of your 1099-G when completing your federal tax return.

Should I attach IRS Form 1099-G to my federal income tax return?

No.

Do I need a copy of the IRS Form 1099-G to file my state income tax return?

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 the 1099-G form to your return. Check your state's law for instructions on how to complete the state income tax return.

If I did not receive the IRS Form 1099-G, can TWC send me another copy?

Yes. Beginning February 1, 2012, you may request a duplicate copy of IRS Form 1099-G by calling Tele-Serv at 800-558-8321 and pressing option 2 for Claim Status.

Beginning February 1, 2012, TWC Tele-Center staff can reissue an IRS Form 1099-G.

Are there free services that can help me with my tax return?

Yes. Free File is a free service that offers free federal tax preparation and e-file options for all taxpayers. Free File is made possible through the Free File Alliance, LLC, a public-private partnership between the IRS and commercial tax software companies.

Everyone can use IRS Free File. If your adjusted gross income was $58,000 or less in 2010, use brand-name software to do your taxes for free. If your income was more, use Free File Fillable Forms. Both options allow taxpayers to prepare and e-file their taxes free.

To learn more about Free File and your free filing options, visit their web site at www.freefile.IRS.gov.

Where can I get information about the Earned Income Tax Credit (EITC)?

The EITC is a refundable federal income tax credit for low- to moderate-income working individuals and families. Visit the EITC web site for more information.

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