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dmcgory
New Member

Unemployment benefits not yet received, but IRS thinks I received amounts totaling over $5,000

I am asking this for someone who has to submit their income tax info to IRS in October (asked for an extension back in April). This individual received a form from IRS saying that over $5,000 was issued to him for unemployment compensation.  This person only received in total, checks totaling  about $550 for unemployment benefits.  When filling out his income tax for 2021, which is due this October, how does he handle this?  He doesn't want the IRS thinking he received this $5,000 amount in full, when only a small portion of the unemployment benefits was received.  Does he claim the $5,000 total on his income tax form?  This was the reason he didn't submit his tax information when it was due in April. He tried calling various places for some kind of answers, but had no luck...thus, he filed for an extension.

 

Any help with this matter would be greatly appreciated.  Thank you.

1 Reply
NancyM5
Employee Tax Expert

Unemployment benefits not yet received, but IRS thinks I received amounts totaling over $5,000

Any income tax return should include all income that was received and reported to the taxpayer.  Unemployment income is reported by the state which paid it and that state is required to furnish a correct Form 1099-G to the taxpayer.  The amount in box 1 of Form 1099-G is what needs to be reported on Form 1040.  If the IRS has different information they will send a letter to the taxpayer indicating the discrepancy.  The taxpayer would respond to the IRS by furnishing a copy of the Form 1099-G that they received from the state and reported on their income tax return.  

Here are some resources for dealing with the IRS:

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