DWD: Unemployment Benefits Taxable, DWD Mails out 1099 Forms

Rose Lynch, 608/266-6753

MADISON – The Department of Workforce Development (DWD) is mailing 1099-G statements to 357,000 individuals who were paid jobless benefits in 2004, department secretary, Roberta Gassman announced today.

“With income tax season once again upon us, I would like to remind Wisconsin taxpayers that unemployment benefits are taxable, and those who received benefits will need these statements to complete their tax returns,” Secretary Gassman said.

DWD began mailing the statements on January 14 and completed the mailing of 357,000 forms today. The 1099-G statement reports the amount individuals were paid in jobless benefits during 2004. Wisconsin paid $910 million in jobless benefits last year, down from $1.2 billion paid during 2003.

Statements are also available from the department’s web site at http://ucclaim-wi.org . Click on “Get your Tax Form 1099-G,” then enter your Social Security Number and Personal Identification Number (PIN), the same PIN used for the UI telephone and Internet claim systems.

The total compensation figure on the provided statement is shown in Box 1 and reflects total unemployment compensation paid during the year. This is considered income for federal and state income tax purposes. The amount paid may include amounts deducted from your unemployment check, but credited in your name for legal obligations, such as child support. Also included are benefits taken to repay an overpayment, benefits applied to satisfy a forfeiture penalty, and benefits withheld for federal or state income taxes. DWD advises those with these types of deductions to consult with the IRS for specific instructions on how these amounts affect their taxes and how to report them.

Wisconsin Unemployment Insurance is required to send 1099-G information to the Internal Revenue Service and the Wisconsin Department of Revenue.

Those who have questions about their 1099-G can telephone the Unemployment Insurance 1099 hotline at 1-800-572-8969. Claims specialists are available Monday through Friday from 7:45 a.m. to 4:30 p.m. to answer calls.