Maryland Unemployment Income and Taxes

[mikejjb]

I filed for Maryland UI in August 2000, but did not receive any monies until March 2021 as it took nearly 8 months to process my claim.  I also received Maryland UI for January 2021 and February 2021 in March 2021 and then forward until September 2021.

Question:  Will I get a separate 1099G for both 2020 and 2021?  By combining the amounts my taxable income will increase.  It seems unfair I should be punished because the state took 8 months to process my claim.

Thank you.

[GeorgeDenseff]

You will owe taxes on the money for 2021, the year it was received.  Maybe we will get lucky and unemployment will not be taxed for 2021.

[mikejjb]

Thank you.   What a great concept...........The State doesn't process unemployment claims for months so the recipients can then get taxed due to inefficient processing.   Then the State recoups some of the money it paid out.