Taxpayers who receive unemployment compensation are encouraged to watch their mailboxes during the tax season for the 1099G tax form that is required to file your federal tax returns. Although unemployment compensation is not taxable for Pennsylvania personal income tax purposes, this form will be an important part of preparing your tax returns.
The Pennsylvania Department of Labor and Industry is reminding taxpayers that the following 1099G forms are being mailed to claimants of the below programs:
- Regular Unemployment Compensation (UC-1099G form)
- Pandemic Unemployment Assistance (PUA-1099G form)
- Reemployment Trade Adjustment Assistance (FP-1099G form)
The 1099G forms for Regular Unemployment Compensation (UC) is now available to download online.
The Pandemic Unemployment Assistance (PUA) 1099G form will also be made available to download online. Once the 2020 1099G forms are uploaded, PUA claimants can access their PUA-1099G via their PUA Dashboard.
Fraud Notice: Because the 1099 forms are automatically generated for all claimants receiving unemployment compensation payments, the receipt of a 1099 form by a person who didn’t file for unemployment may indicate a case of identity fraud. If someone who didn’t file for unemployment receives what looks to be a 1099 tax form in the mail, they should report this suspected fraud immediately so the Department of Labor and Industry can correct their income with the IRS and prevent any issues with the victim’s taxes.
The victim should not wait for a revised 1099 to file his/her tax returns. According to the IRS, the victim can move forward with filing their taxes, reporting only their true income and not fraudulent income reported in their name. The victim does not need to complete the additional form normally required by the IRS for reporting identity theft.
Report fraudulent activity regarding Pennsylvania's UC benefits:
Identity theft – if you suspect or know that someone is using your personal information such as your name, Social Security number, or date of birth without your knowledge or consent to file for UC benefits, complete and submit the Identity Theft Form.
Unemployment claims fraud – If you know of individuals who are collecting UC benefits illegally, including people who are working and not reporting their wages for PA UC benefit purposes; or people who cannot work due to an illness, disability or incarceration, complete and submit the Unemployment Claims Fraud Form.
PA Fraud Hotline – 1-800-692-7469
File a police report with the municipality you resided in at the time the unemployment benefits in question were paid. A copy of the police report must be provided to the Office of Unemployment Compensation.
If you are a victim of identity theft you may also report it to the Federal Trade Commission and start a recovery plan at https://www.identitytheft.gov.
For more information on identifying fraud, what to do if you believe you have been a victim of fraud, or how to report fraud, visit L&I's website.
Property Tax/Rent Rebate Program
Unemployment compensation should be included to determine income eligibility for the Property Tax/Rent Rebate program.
If a Property Tax/Rent Rebate program applicant has received a 1099G for unemployment compensation and they believe it to be fraudulent, they should take these steps: (1) report the fraudulent activity to both the Department of Labor and Industry and the police; (2) do not include this income on their Property Tax/Rent Rebate application.