Unemployment and 1099G

nancyrtucker · ‎March 14, 2021

I qualified for PUI (pandemic unemployment) in 2020 and 2021 but did not receive any benefits/money until 2021 for both 2020 and 2021 because the unemployment offices were so backed up on paperwork. It all came in one lump sum in March 2021 . I received $10,224 on 3/3/2021 but $4446 of the payment was for 2020. I have not received a 1099G. Do I claim the unemployment benefits for both 2020 and 2021 on my 2021 tax return since I received all the money in 2021 or do I claim the amount I was suppose to receive in 2020 ($4446) on my 2020 tax return? In addition, if I have to claim it all in 2021 since that is when I received the payment, will I still get the federal tax advantage of not having to pay taxes on $10,200 UI (Tax waiver/American Rescue Plan)? I have not filed my tax returns yet for 2020. Please help - I cannot find any answers anywhere about these two questions.

msquared · ‎March 14, 2021

Hi Nancy. I am NOT a tax professional, but in all other tax rules for income it is normally counted when you receive it. I'm hoping a tax pro will add to my comment. The only thing I can advise is to contact your state unemployment office. They issue the 1099-G form - and with this new tax break (for 2020 unemployment income) - perhaps(?) they will consider issuing revised 1099-G's for benefits that should have been for 2020? Just a thought and a hope.

MaryM428 · ‎March 14, 2021

Only claim your 2020 amount on your 2020 income taxes. If you did not get a 1099-G, you can get the information from your state unemployment wesite. We do not yet know if the relief from federal income taxes will be extended to also apply to the 2021 unemployment benefits. That will be determined by future laws.

TurboTax is working with the IRS to revise our software and make the changes needed for the American Rescue Plan. Do you file your return until those changes are ready in TurboTax, which should be very soon.

How do I report unemployment if I didn't get a 1099-G?

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Unemployment and 1099G

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