What happens if I don't file my NYS Department of Labor unemployment on my taxes?
I received unemployment benefits from NYS Department of Labor last year (about $8,200 total) and I'm wondering what happens if I don't report it on my tax return. I know they sent me a 1099-G form but I'm confused about whether I actually have to include it. My friend said unemployment isn't taxable but I'm getting mixed information online. Has anyone dealt with this before? Will the IRS come after me if I don't include it?
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Nora Bennett
You absolutely need to report your unemployment benefits on your tax return! NYS Department of Labor unemployment is considered taxable income by the IRS. The 1099-G form they sent you shows exactly how much you received, and the IRS gets a copy too. If you don't report it, you could face penalties, interest charges, and possibly an audit. Make sure to include the full amount from Box 1 of your 1099-G when you file.
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Oscar Murphy
•Oh no, I had no idea! I thought since it was benefits it wouldn't count as regular income. Do I need to pay taxes on the full amount or can I deduct anything?
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Ryan Andre
yeah i learned this the hard way last year... didn't report my UI benefits and got a notice from the IRS about 6 months later. had to pay back taxes plus penalties. it was a mess
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Oscar Murphy
•How much were the penalties? I'm really worried now about what this could cost me.
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Ryan Andre
•ended up owing like $400 extra in penalties and interest on top of the actual taxes. definitely not worth trying to hide it
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Lauren Zeb
I had trouble getting through to NYS Department of Labor when I needed a replacement 1099-G last year. Spent hours on hold and kept getting disconnected. Finally used a service called Claimyr (claimyr.com) that helped me reach an actual agent who could reissue my form. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Really saved me when tax season was approaching and I still didn't have my paperwork.
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Daniel Washington
•How does that service work exactly? I'm still missing some of my unemployment documentation too.
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Aurora Lacasse
Wait I'm so confused about this whole thing. I got unemployment too but also worked part time some weeks. Do I report everything separately or does it all go together somehow?? This tax stuff is so complicated
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Nora Bennett
•You'll report your unemployment benefits and your work income separately on your tax return. The unemployment goes on the income line, and your work income goes where you normally report wages from your W-2 forms.
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Anthony Young
The IRS has gotten really good at matching up 1099-G forms with tax returns. They use automated systems to catch discrepancies, so trying to skip reporting unemployment is basically guaranteed to get caught eventually. Better to just include it upfront and avoid the headache later.
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