The Montana Department of Labor & Industry (DLI) today announced that 1099-G forms have been mailed to all 2020 Unemployment Insurance benefit recipients.
DLI sends 1099-G forms to individuals who received payments under the regular, pandemic, and additional benefit programs. Those who received payments over the last year will need this form to file their taxes. The Department mailed 1099-G forms to all claimants on Thursday and Friday morning. Claimants are also receiving a resource letter with additional information on the document.
UI benefits are considered regular income and are subject to federal income tax. This includes benefits received under regular UI, any special unemployment compensations authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act or Continued Assistance for Unemployed Workers Act of 2020, and the Lost Wages Assistance (LWA) and Interim Pandemic Assistance (IPA) programs. In Montana, UI benefits are exempt from state income tax.
Regular UI claimants have the option to have 10% of their benefits withheld for their federal tax liability. The option to have federal taxes withheld was not available for the Pandemic Unemployment Assistance (PUA), LWA and IPA programs. Information on the taxability of UI benefits is provided to claimants at the start of their claim.
Montana claimants can also access their 1099-G form in their MontanaWorks.gov account, under the 1099 tab. Those without an account can create one by visiting MontanaWorks.gov.
Montanans who receive a 1099-G form from DLI but did not file for unemployment benefits are likely victims of identity theft. All states, including Montana, have seen an increase in UI fraud due to sophisticated nationwide criminal schemes that use personally identifiable information sourced from external data breaches to file fraudulent UI claims. Montanans who did not file for UI but received a 1099-G are asked to call the fraud hotline at (406) 444-0072 to report this criminal activity.
The Department is unable to provide tax advice. For tax filing information, Montanans can call the IRS at (800) 829-1040 or visit their website at irs.gov. Claimants with questions concerning their tax situation are recommended to consult a tax advisor. Additional information on the taxability of UI benefits is available at dli.mt.gov/taxability-of-benefits.
Claimants with technical, eligibility, or benefits questions are encouraged to view the COVID-19 resource website at dli.mt.gov/covid-19. A variety of information for both Montana workers and employers are available, in addition to resources to help claimants navigate the unemployment process.
