Tax Form 1099-G: What You Need to Know

It’s almost tax time! It’s that time of year again, and for those who received unemployment benefits of $10 or more during the tax year, the government agency that paid those benefits should issue you a 1099-G. However, if you receive a 1099-G despite never having filed a claim for unemployment benefits, you have likely been a victim of identity theft and unemployment fraud. In order to address this, you should take the following steps:

1. Contact the state agency to report that your identity has been used to claim UI benefits. A complete listing of the contact information by state can be found here (UI Claimant Fraud Contacts)
2. Report the fraud to your HR department.
3. File a report with both the FTC and the IRS.
   • You should report the identity theft to the FTC at https://identitytheft.gov. The FTC site also provides you with a personalized recovery plan based on the information that you provided. With an account, the FTC can walk you through each step of the recovery process, update the plan as needed and track your progress as well as provide pre-filled forms and letters that may be needed,
   • You should also report the identity theft to the IRS to help avoid paying taxes on the 1099-G income. This can be done via phone at 1-800-908-4490 or by filing an IRS Form 14039 – Identity Theft Affidavit (https://irs.gov/pub/irs-pdf/f14039.pdf)
4. Contact your bank, credit card companies and all three credit reporting agencies (Equifax, Experian, and TransUnion) to place a freeze on your credit reports to further protect your identity during the investigation.

For more information about Unemployment Fraud and to find answers to commonly asked questions, please refer to our UI Fraud Support Resources at U.I. Fraud.

If you have additional questions or would like to learn more about how Thomas & Company can help you monitor your unemployment claims – both legitimate and fraudulent, please contact your Client Relationship Manager or a member of our Sales Team. Thomas & Company is committed to monitoring these situations that impact your unemployment costs and we will continue to work together to keep your costs under control.