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Withholding Tax
If you are receiving benefits, you may have federal income taxes withheld from your unemployment benefit payments.
To change your federal tax withholding option for unemployment benefit payments, complete and return TWC’s federal tax withholding form
.
Reporting Requirements
You must report all unemployment benefits you receive to the Internal Revenue Service (IRS) on your federal tax return.
Information Needed to File Taxes
For your tax return you need to know the total amount of benefits we paid you, the amount of any federal taxes withheld, and TWC's Federal Employer ID Number.
Each January, we mail to individuals who received unemployment benefits during the prior calendar year an IRS Form 1099-G, which provides all the 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.
You can file your federal tax return without a 1099-G, as explained below in Filing Your Return Without Your 1099-G.
Reporting Your Benefits
When you report the unemployment benefits we paid you:
- Enter the TWC Federal ID number as 74-2764775.
- Enter the amount of benefits you are required to report in Line 19 of IRS Form 1040 (see IRS Instructions, section on Line 19) or Line 3 of IRS Form 1040EZ.
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.
If You Received an Overpayment
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, consult IRS Publication 17, Your Federal Income Tax; select Repayment of Unemployment Compensation. You can call the IRS toll-free at 800-829-3676 to order a printed copy of Publication 17.
Filing Your Return Without Your 1099-G
You can file your federal tax return without a 1099-G if you know the total amount of benefits TWC paid you, the amount of any federal taxes withheld, and TWC’s Federal Employer ID Number, 74-2764775.
Some professional tax preparers may require a paper copy of your 1099 G when completing your federal tax return.
Beginning January 15th of each year, you can find the amount of benefits we paid you and any federal taxes we withheld online or by phone.
Online:
- Logon to Unemployment Benefits Services
- Select IRS 1099-G Information from the Quick Links menu.
By phone:
- Call Tele-Serv at 800-558-8321.
- Select option 2 and follow the prompts.
Requesting a Duplicate 1099-G
If you do not receive your 1099-G by February 1, and you received unemployment benefits during the prior calendar year, you may request a duplicate 1099-G by calling Tele-Serv at 800-558-8321 and selecting option 2 for Claim Status.
We cannot process requests for duplicate 1099-G forms until February 1 because we are still mailing the forms.
Updating Your Address
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 new form to you by completing both of these steps:
- Logon to Unemployment Benefits Services, select My Contact Information from the Change My Profile menu, and update your address.
- Call Tele-Serv at 800-558-8321 and select option 2 to request a duplicate 1099-G. Enter your Social Security number and follow the prompts. Make sure that we have your correct address before you request a duplicate form.
If Your 1099-G Amount is Different than You Expect
Your 1099-G will show the amount we paid you, even if you received less than that total amount due to:
- Overpayment, even if you repaid all or part
- Benefits we absorbed or withheld to reduce an overpayment
- Debit card payments voided because you did not activate the debit card within one year of the deposit
- Delayed payments issued for a prior claim
- Payments issued in the reporting year that were canceled in the next year
- Another change to your claim
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.
Examples
- Payment Date: You submitted payment requests for weeks in one calendar year, and we issued the payments in the next calendar year. We report the income for the year we pay the benefits, not when you request the payment.
- Overpayment: You had an overpayment in March 2011 and repaid it by sending a check to us in November 2011. We cannot deduct the refund from the total amount shown on your 1099-G. The 1099-G will always show the total benefit amount we paid to you in that calendar year and does not show the amount you repaid to us. You must indicate on your tax return the amount you repaid to TWC.
Your History of Benefit Payments
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.
Earned Income Tax Credit
The Earned Income Tax Credit is a refundable federal income tax credit for low- to moderate-income working individuals and families. For more information, see the IRS page on the Earned Income Tax Credit.
Free Tax Filing Services
The IRS offers free services to help you with your 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.freefile.IRS.gov.
State Income Taxes
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 return. Check your state’s law for instructions on how to complete the state income tax return.