What Caused the Problem?Īpproximately 40 million Americans received an aggregate of over $580 billion in unemployment insurance (UI) benefits in 2020. Not only will this surprise tax bill hurt many workers who can’t afford it right now-there’s a strong legal argument that, according to current law these benefit payments should never have been taxed in the first place.

1 At a time when millions are unemployed, 2 when families continue to face food and home insecurity, 3 Congress and the Biden administration must act urgently to prevent these surprise tax bills, and to allow millions who have already paid tax on their 2020 benefits to receive a timely refund check. Mostly unnoticed in the negotiation, though, is that, thanks to a decision by the Trump Department of the Treasury earlier in the pandemic, many hard-hit families who received unemployment insurance benefits in 2020 are now facing unexpected tax bills that could run to the thousands of dollars per family. If you do not know which number to use, call Reemployment Assistance Customer Service at 605.626.2452 - For TTY services, call 711 - Fax: we write, Congress and the Biden administration are debating the size of a new relief package needed to aid struggling households and right the economy. Roosevelt St., Aberdeen, SDįind the appropriate phone number to call on our Staff Directory page.

If you need a receipt, contact our Overpayments department. If you have any questions regarding this, please consult a tax advisor or the Internal Revenue Service. Enter the result on the appropriate line of your tax form.

26, 2021, by the National Unemployment Insurance Fraud Task Force).ġ099-Gs and overpayments: If you were overpaid and have repaid any of your overpayment in that same year, subtract that amount from the total amount received as shown on your 1099-G. See the Issuance of Erroneous Forms 1099-G due to Fraudulent Unemployment Insurance Claims alert (issued Feb. If you have already filed your taxes, please refer to the Identity Theft and Unemployment Benefits page on IRS.gov for updates and additional tax filing information. Do not wait to receive a corrected 1099-G to file your taxes. When you file your income taxes, only include income you actually received. The RA Division will investigate and send out an amended 1099-G if appropriate. If you receive a 1099-G tax form, but you did not file for or receive unemployment benefits from DLR in 2023, and believe you may be a victim of identity theft, please follow these steps. If you do not receive it by the second week in February or have questions, please call us at 605.626.2452. Benefits must be claimed on your federal income taxes. 1099-G forms are mailed in January each year.ġ099-G forms have be mailed. The IRS will be given the same information. Claimants will be furnished a statement, Form 1099-G, for the year in which benefits were paid to you. Reemployment Assistance Benefits - IRS Form 1099-GĭLR is required to report the total amount of unemployment compensation received during the calendar year and the amount of federal income tax that was withheld to the (Internal Revenue Service IRS). State Information Data Exchange System (SIDES) e-Response.

State unemployment tax form