Anyone who filed a valid claim for unemployment benefits in the current year will receive a Form 1099-G in January of the following year. If an individual had a state or local income tax refund in the previous tax year, they will also receive a Form 1099-G. Where employees need to be vigilant is in the case where they did not file for unemployment and they receive a Form 1099-G showing Unemployment payments in Box 1. Most State Workforce Agencies will suppress a Form 1099-G for Unemployment when they have been alerted of a potential Identity Theft case.
| Situation | 1099-G NOT Issued | 1099-G Issued |
|
Identity Theft victim - Payments received were returned to state |
X |
|
|
Identity Theft victim - No payments made by state |
X |
|
|
Identity Theft victim - Claim opened and paid but victim did not get the money and can’t return the funds |
|
X |