Understanding Your Unemployment Insurance Tax Responsibilities Including Form 1099-G

Note: Dates throughout the article have been updated to 2016. All other information remains the same.

When you receive unemployment benefits from the Idaho Department of Labor, it is important to understand your responsibilities at tax time. Here are some answers to common questions regarding unemployment insurance and taxes.

Are unemployment insurance benefits taxable?1099 form_general

Unemployment insurance benefits are taxable, and if you collected or repaid unemployment insurance benefits in 2016, you are required to file a tax return for payments received or repaid. This information is reported to the Internal Revenue Service (IRS).

What do I need from the Idaho Department of Labor to file my taxes?

By the end of January, you should receive a 1099-G statement in the mail which shows the total taxable unemployment compensation issued to you from the State of Idaho for a calendar year.

What if I didn’t receive my 1099-G in the mail?

1099-Gs are currently being mailed. If you do not receive your statement in the mail, the address you have on file may be incorrect. It is your responsibility to make sure the Idaho Department of Labor has the most up-to-date and accurate address. Your 1099-G includes your entire Social Security number. Failing to update your address could put your identity at risk.

Can I access my 1099-G information online?

Yes. 2016 unemployment insurance 1099-G information is now available online at labor.idaho.gov/claimantportal. It can be found in the “Manage Claims” section of the Claimant Portal. Select the “1099-G Reporting” option on the right-hand side of the screen.

If you are new to the Claimant Portal, you must register and complete steps 1 through 3 before you can view your 1099-G tax information.

Can I change my tax withholding on my unemployment insurance payments?

Yes. You may choose to have 10 percent withheld for federal taxes. Tax withholdings can be changed in the “Manage Claims” section of the Claimant Portal. Select the “Tax Withholding” option if you would like to change your tax withholdings.

What if I disagree with the amount listed on my 2016 1099-G?

Benefits are reported based on the issue date of the payment, not on the week ending date(s) the payment was made. Before contacting us, verify your payments online at labor.idaho.gov/claimantportal and select the “Certification and Payments” option. If you still do not agree with the amount on your 1099-G after reviewing your payment summary, please call us at (208) 332-8942.

What if I re-paid an overpayment in 2016?

Your 1099-G will include any repayments received in 2016, excluding penalties and interest, which are not included because they are not PAID benefits.

Can I request a 1099-G from prior years?

Yes, you can view 1099-Gs prior to 2016 online at labor.idaho.gov/claimantportal.

I thought I paid into unemployment through taxes already? Why am I being taxed again?

The unemployment insurance benefits program is funded by employers through quarterly payroll taxes. Your benefits are considered income and are therefore taxable.

What if I have other questions about my taxes?

The Idaho Department of Labor is not authorized to instruct you on how unemployment insurance affects your taxes. Please contact the Idaho State Tax Commission at (208) 334-7760 or the Internal Revenue Service at (800) 829-1040.

–Idaho Department of Labor