If you received Form 1099-G showing unemployment benefits you didn’t actually receive, it may be a sign of unemployment fraud or identity theft.
In many cases, this happens when someone uses your personal information to file a fraudulent unemployment claim in your name.
What’s Form 1099-G?
Form 1099-G is sent by a government agency to report certain types of income that may need to be included on your tax return.
This form can report:
Unemployment compensation
State or local income tax refunds, credits, or offsets
Reemployment Trade Adjustment Assistance (RTAA) payments
Certain taxable grants
Agricultural payments
Payments on a Commodity Credit Corporation (CCC) loan
Not all 1099-G forms are related to unemployment—but unexpected unemployment income is a common red flag.
I received a 1099-G, but I didn’t get unemployment benefits. What should I do?
If the unemployment income on your 1099-G isn’t yours, take these steps as soon as possible.
1. Contact the issuing state agency
Reach out to the state agency listed on the form and report the fraud. Ask for a corrected Form 1099-G that removes the unemployment income.
Many states have dedicated unemployment fraud reporting pages or online forms.
2. File an accurate tax return
If you can’t get a corrected 1099-G before filing your taxes, the IRS advises you to:
File your return using only the income you actually received
Do not include the fraudulent unemployment income
A corrected 1099-G can help prevent issues later, so keep copies for your records.
3. Consider additional identity theft protection
Depending on your situation and your state’s guidance, you may also want to:
Report the fraud to the Social Security Administration
Monitor your credit and tax accounts for unusual activity
Should I include the 1099-G income on my return?
No. If the unemployment benefits weren’t yours, you shouldn’t report them as income.
Reporting only your actual income helps avoid an unexpected tax bill tied to fraudulent activity.
Key takeaway
If you received a Form 1099-G for unemployment benefits you didn’t receive, it could be unemployment fraud or identity theft. Contact the issuing state agency right away, request a corrected form, and file an accurate return reporting only your real income.
This content is provided for informational purposes only and should not be construed as tax, legal, financial, accounting, or other advice. Rules and regulations vary by location and are subject to change, so please consult with an expert if you need advice specific to you.
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