NY unemployment 1099-G missing overpayment deductions - tax reporting issue
Just got my 1099-G from NY unemployment and there's something really weird going on. Last year I had to repay about $2,470 because of an overpayment from DOL (they said I underreported some part-time income). I paid it all back in July 2025, but my 1099-G shows the FULL amount I was initially paid, with no adjustment for the money I returned! Shouldn't the 1099 only show what I actually got to keep? Now it looks like I need to pay taxes on money I didn't even get to keep. Has anyone else dealt with this? How do I get them to fix my 1099 before I file my taxes?
20 comments
Lucas Parker
This is actually a common issue with NY unemployment 1099-G forms. The DOL should have issued you a corrected 1099-G that reflects the repayment, but they often don't do this automatically. You need to specifically request a corrected form by calling the Tax Form unit at 888-209-8124. Select the option for tax form assistance when prompted. In the meantime, according to IRS rules, if you repaid benefits in the same year you received them, your 1099-G should only show the net amount. If you repaid benefits from a prior year, you might be eligible to claim a deduction or credit on your tax return for the repayment. Either way, having accurate documentation is essential.
0 coins
Katherine Hunter
Thank you! I'm going to try calling that number tomorrow. Do you know if there's a specific form I need to fill out to request the correction? I've been trying to get through to someone at DOL for 3 days with no luck.
0 coins
4d
Write a comment...
Donna Cline
Same thing happened to me!!! My 1099 shows I got $11,340 but I had to pay back $3200 of that cuz they said I didnt report a temp job right. so frustrating, I cant afford to pay taxes on money I didnt even keep!!
0 coins
Katherine Hunter
It's so frustrating! Have you been able to get through to anyone about fixing it? I'm worried about tax deadlines coming up.
0 coins
4d
Write a comment...
Harper Collins
I handled this exact situation last year. You need to keep detailed records of everything. Here's what worked for me: 1. Call 888-209-8124 specifically asking for the Tax Form department 2. Have your repayment confirmation numbers ready (from when you repaid the overpayment) 3. Request a "Corrected 1099-G" - use those exact words 4. Get the name of the representative you speak with 5. Ask for a confirmation number for your request It took about 3 weeks to get my corrected form. If you can't get through by phone, you can also write to: NYS DOL, PO Box 15130, Albany, NY 12212-5130. Include your full name, address, last 4 of SSN, and repayment documentation. Don't file your taxes until you have the corrected form in hand.
0 coins
Katherine Hunter
This is incredibly helpful! I've been taking screenshots of my payment confirmation but wasn't sure what exactly to ask for. I'll try calling first thing tomorrow using your script. Did they give you any trouble about issuing the corrected form?
0 coins
4d
Write a comment...
Kelsey Hawkins
After trying for DAYS to get through to someone at the DOL about my 1099 issues (different problem but same department), I finally used Claimyr and got through in under 10 minutes. It's a service that gets you past the phone queue. Totally worth it for me because I was about to miss my tax filing deadline waiting for a corrected form. Just go to claimyr.com and they have a video that shows how it works: https://youtu.be/Rdqa1gKtxuE Once I got through, the rep was actually really helpful and processed my corrected 1099-G while I was on the phone with her. Got the new form by email within 48 hours.
0 coins
Dylan Fisher
does this actually work? i hate giving my info to random websites
0 coins
4d
Kelsey Hawkins
It worked for me! They don't need much personal info - it's more about connecting you through to the DOL phone system. The video on their site explains it better than I can.
0 coins
4d
Write a comment...
Edwards Hugo
u dont have to get a corrected 1099 if u don't want to wait. when u file taxes u can fill out Form 8379 (i think thats the right number) misc income deduction for repaid benefits. u subtract what u paid back. my tax guy did this for me last year when i had same problem
0 coins
Gianna Scott
It's actually Form 8821 for tax authorization or possibly Form 8275 for disclosure statement, but neither of those are what you need here. For repaid unemployment benefits, you need to use either: 1. Schedule A if you're itemizing deductions (under "Other Miscellaneous Deductions") or 2. If the repayment was over $3,000, you might qualify for a special tax credit calculation using Form 1040 Schedule 3 But truthfully, getting a corrected 1099-G is the cleanest solution and prevents potential audit flags. The NY DOL is legally required to issue an accurate form.
0 coins
4d
Write a comment...
Katherine Hunter
Update: I finally got through to someone at DOL! After being on hold for almost 2 hours (started calling right when they opened), I spoke with a representative who confirmed that my 1099-G needs to be corrected. She said they've been getting a lot of calls about this issue. Apparently, the system doesn't automatically adjust the 1099-G when you make repayments - it has to be done manually by request. She took my information and said I should receive a corrected 1099-G within 14 business days. I asked for a confirmation number for the request, which she provided. She also suggested I don't file my taxes until I receive the corrected form.
0 coins
Donna Cline
TWO HOURS?? omg i cant wait that long every day. did they say anything about extending the tax deadline for people dealing with this? seems unfair we have to wait because of their mistake!
0 coins
4d
Harper Collins
Good job being persistent! Make sure to follow up if you don't receive the corrected form within the timeframe they promised. In my experience, it might take a bit longer than 14 business days (mine took about 18 business days), but it should arrive before the April tax filing deadline. Keep all your documentation just in case.
0 coins
4d
Write a comment...
Dylan Fisher
Wait I'm confused... If you paid back the money shouldn't the state just send a corrected form automatically?? Why do we have to chase them down for this?
0 coins
Gianna Scott
Ideally, yes, the NYS DOL should automatically issue corrected 1099-G forms when benefits are repaid. However, their systems don't always properly track and process these adjustments automatically. The issue stems from how their accounting system is set up - repayments often go to a different department than the one that generates tax forms. Unless someone manually reconciles these systems before tax season, the original payment amount remains on record for 1099-G purposes. This disconnect between departments is why it's important to proactively request a correction rather than assuming it will happen automatically. It's frustrating but unfortunately common with state unemployment systems.
0 coins
4d
Write a comment...
Alfredo Lugo
My sister had this exact same issue but with her 2024 1099-G. She never bothered to get it fixed and ended up paying taxes on money she didn't keep. Don't make the same mistake! The IRS doesn't know you paid money back unless the 1099 is corrected or you specifically claim it on your tax return.
0 coins
Katherine Hunter
That's exactly what I'm worried about! I don't want to pay extra taxes on money I had to return. Thanks for the warning - I'm definitely going to keep pushing until this is fixed.
0 coins
4d
Write a comment...
Kelsey Hawkins
Any update on your situation? Were you able to get the corrected 1099-G?
0 coins
Katherine Hunter
Yes! Finally got my corrected 1099-G yesterday - took about 17 business days total. The new form shows the correct amount ($4,930 less than the original). Such a relief! For anyone else dealing with this: be persistent, keep detailed records of all your repayments, and don't file your taxes until you have the corrected form in hand. Thanks everyone for your help!
0 coins
4d
Write a comment...