FAQ Friday: Are Unemployment Insurance Benefits Taxable?

Q. Are unemployment insurance benefits taxable?

A. Yes. Unemployment insurance benefits are fully taxable, and you are required to file a tax return for payments received or repaid.

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

A. If you collected or repaid unemployment insurance benefits in 2014, you’ll receive a summary of the benefits you received by the end of January. This form, otherwise known as an IRS form 1099-G, will be sent to your last known address. It’s your responsibility to make sure the Idaho Department of Labor has the most recent and correct address. If your address has changed, go to labor.idaho.gov/iw and update it, even if you are no longer filing. IMPORTANT: YOUR 1099-G WILL INCLUDE YOUR ENTIRE SOCIAL SECUIRTY NUMBER, AS REQUIRED BY THE INTERNAL REVENUE SERVICE. FAILURE TO UPDATE YOUR MAILING ADDRESS COULD RESULT IN YOUR 1099-G GOING TO THE WRONG ADDRESS AND PUT YOUR IDENTITY AT RISK.

Q. Can I access my 1099-G information online?

A. Once the 1099-G information is available, you can also access it online. You can download your 2014 payment information from labor.idaho.gov/iw. All you have to do is select the ‘YearEnd 1099G’ option and print the information. This information isn’t available yet, but will be available by the end of January.

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

A. You can verify the payments you received online at labor.idaho.gov/iw. Select the ‘Payment Summary’ option. If you still have questions, call us at (208) 332-8942.

Q. What if I re-paid an overpayment in 2014?

A. A 1099-G will be mailed to you and will include any repayments received in 2014, excluding penalties and interest.

 Q. What if I did not receive a W-2 from my employer? Can you give me that information? 

A. We are not allowed to provide employer tax identification numbers. Please contact the IRS at 1-800-829-1040 for help obtaining your W-2.

Q. What if I have already filed my taxes by the time I received my 1099-G form?

A. We are not authorized to instruct you on how unemployment insurance affects your taxes. Please contact the Idaho State Tax Commission at (208) 334-7660, (800) 972-7660 or the Internal Revenue Service at (800) 829-1040

 Q. What if I have other questions about my taxes?

A. We are not authorized to instruct you on how unemployment insurance affects your taxes. Please contact the Idaho State Tax Commission at (208) 334-7660, (800) 972-7660 or the Internal Revenue Service at (800) 829-1040