IRS Guidance on Incorrect Form 1099-G for Unemployment Benefits

IRS has provided guidance for taxpayers with a missing or incorrect Form 1099-G, which state tax agencies issue to report taxable unemployment compensation.
Due to the pandemic, millions of Americans lost jobs in 2020 and received unemployment benefits issued by state agencies. Scammers took advantage of the pandemic by filing fraudulent claims for unemployment compensation using stolen personal information.
Taxpayers who receive an incorrect Form 1099-G for unemployment benefits they did not receive should contact the issuing state agency (EDD in California) to request a revised Form 1099-G showing they did not receive these benefits. Taxpayers who are unable to obtain a timely, corrected form should still file an accurate tax return, reporting only the income they received.
EDD recently shared a number of new resources designed to help people who received a Form 1099-G prepare their 2020 tax returns:

  • Those who received Form 1099-G and think that someone fraudulently filed a claim using their name, address, or Social Security number are encouraged to notify the EDD through Ask EDD by selecting the Form 1099G category.
  • Those who did receive benefits but did not receive a 1099-G should visit the new Form 1099-G information center to request a copy.
  • A designated helpline is also available during regular business hours at 866-401-2849 for those who do not agree with the information on their Form 1099-G or believe they have been victim of fraud. Once fraud has been verified, EDD will issue a corrected Form 1099-G.
  • Other resources include answers to FAQs, a video about how to access tax information using UI Online, and a printable one-page guide to use as a helpful handout.