2014-01-23 / Community

State: Remember unemployment benefits taxable

LANSING – With tax season approaching, the state of Michigan has begun making available yearend tax statements to anyone who has received unemployment benefits in 2013.

The statements, called 1099-G or “Certain Government Payments,” are prepared by UIA and report how much individuals received in unemployment benefits and income tax withheld last year.

Those who have established a free online account with the UIA will be able to view and print their 1099-G statement through the Michigan Web Account Manager beginning Feb. 1. Customers can access MiWAM at www.michigan. gov/uia. Click on Michigan Web Account Manager for Claimants and Employers.

Customers who do not have an online account may register for one at the UIA website. For step by step instructions on how to sign up, click on “MiWAM Toolkit for Claimants.”

Claimants will receive a hard copy of the statements via U.S. mail through the end of January.

“Unemployment benefits are taxable, and those who received benefits will need these statements to prepare their 2013 state and federal tax returns,” said Shaun Thomas, director of the Unemployment Insurance Agency.

Copies of the 1099-G forms are also sent to the IRS and the Michigan Department of Treasury.

Though the 1099-G statement reflects the total amount of benefits being paid, monies deducted from claims to repay a benefit overpayment, or to fulfill a court order, such as Friend of the Court payments, are not included on the form. As a result, jobless workers may have received less than what is reported on the 1099-G. The agency encourages individuals with these types of deductions to consult with the Internal Revenue Service to learn how these deductions affect their taxes and how to report them.

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