Tax Information and 1099-Gs

What is the IRS Form 1099-G for unemployment benefits?

By Jan. 31, 2021, all individuals who received unemployment benefits in 2020 will receive an IRS Form 1099-G from the Division of Employment Security. 1099-G forms are delivered by email or mail and are also available through a claimant’s DES online account. 

These statements report the total amount of benefits paid to a claimant in the previous calendar year for tax purposes. The amount reported is based upon the actual payment dates, not the week covered by the payment or the date the claimant requested the payment. The amount on the 1099-G may include the total of benefits from more than one claim.

Are unemployment benefits taxable?

Yes.  All claimants are notified by DES when filing a claim that unemployment benefits are taxable income and must be reported on federal and state tax returns. Claimants may elect to have state and/or federal taxes withheld from their benefit payments. 

I received a 1099-G from DES but did not file for unemployment. What should I do?

It is possible that you are a victim of identity theft and someone has filed a claim for unemployment in your name. This type of fraud occurs when someone steals another person’s identifying information through outside data breaches, email phishing schemes, impersonation scams and other methods, and uses it to apply for unemployment. 

If you suspect unemployment benefits fraud, you should report it to DES at 984-465-9224 or through the online fraud reporting form. DES must investigate and confirm fraud to correct the 1099-G for the individual and the IRS.

Learn more about steps you can take to report and recover from identity theft on the DES Unemployment Insurance Fraud page.   

I received a 1099-G, but it shows a different amount than what I received. What should I do?

The IRS requires that we report all benefits paid to you in the calendar year. If you disagree with the amount shown on your 1099-G, you may contact the DES Customer Call Center at 888-737-0259.

What is reported on my 1099-G? 

DES reports the total amount of unemployment benefits paid to you in the previous calendar year on your 1099-G. This amount is based upon the actual payment dates, not the period covered by the payment or the date you requested the payment. This amount may include the total of benefits from more than one claim.

If I repaid an overpayment, will it be reflected on my 1099-G? 

No. DES reports the total amount of benefits paid to you in the previous calendar year on your 1099-G, regardless of whether you repaid any overpayment. If you repaid part or all of an overpayment during the previous calendar year, you may be able to deduct the repaid amounts on your income tax return. The repaid amount should be reported on the tax return submitted for the year the repayment was made.

If I did not receive my 1099-G, how can I get a copy? 

You may download a copy of your current IRS Form 1099-G through your online account at des.nc.gov at no charge. 1099-Gs for years from 2018 forward are available through your online account.

Written requests for a hard copy of your 1099-G form from 2018, 2019, 2020 or 2021 may be:

          Division of Employment Security
          Attn: Intrastate Claims Unit
          P.O. Box 25903
          Raleigh, NC 27611-5903
 

The written request must include the individual’s complete name, complete address, phone number, last four digits of SSN or Claimant ID, and date of birth. Once received, requests are processed within 48 hours.

There is no cost for years 2018, 2019, 2020 and 2021 (current).

Requests for 1099-Gs for years before 2018 may be submitted to the Legal Services Section using the Request for Release of Information Form. The fee for years prior to 2018 is $15.00.