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Got PA UC 1099-G tax form but never received benefits in 2025 - what can I do?

So frustrated right now! My husband lost his job at the warehouse last October and applied for PA unemployment right away. His claim was stuck as 'pending' for MONTHS with no explanation. Then in February, out of nowhere, he got a weird call saying his benefits were approved retroactively and he'd be getting a payment for $4,800 within a week. The rep mentioned something about his 'open issue' being resolved but wouldn't explain what the issue had been. Here's the crazy part - the money NEVER showed up! We called and called but couldn't get through. My husband's dashboard still shows 'payment issued' but nothing ever hit our account. We eventually gave up after trying for weeks. Now we just got a 1099-G saying he received $4,800 in unemployment benefits that we NEVER GOT! What makes it even weirder is we had set up direct deposit during his application, but the rep on the phone mentioned sending a 'check' instead. Do we owe taxes on money we never received? How do we fix this? Has anyone dealt with this nightmare before?

You need to request a corrected 1099-G immediately. This is actually pretty common with PA UC. Call the UC service center at 888-313-7284 and request to speak with someone about a 1099-G correction. They'll need to investigate the missing payment first, which could take 2-3 weeks. Be prepared to provide proof that you never received the payment (bank statements showing no deposits from Treasury). Also check if they mailed a check to an old address - if you moved during that time, the check might have been sent to your previous address and never forwarded.

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Thanks for the advice! We haven't moved so that's not the issue. I've been trying to call that number for days but it's ALWAYS busy. Is there any other way to contact them? The deadline for taxes is getting close and I'm freaking out!

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you shud check if they put it on tha mony network card insted of direct deposit. my bros payment got put on card even tho he had direct deposit set up.

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We never got any card in the mail though? Is that something they automatically send or do we have to request it?

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THE SAME EXACT THING HAPPENED TO ME!!!! I got a 1099-G for $6200 that I NEVER GOT!! I called for WEEKS and nobody would help me. Then I finally got someone who told me the payment was "canceled" in their system but the 1099 was generated anyway!! This system is COMPLETELY BROKEN and they expect us to pay taxes on money we never got!!! I had to file a complaint with my state rep's office to get it fixed.

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That's terrifying! Did you eventually get a corrected 1099-G? How long did it take after contacting your state rep?

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I work with UC issues regularly, and this is definitely something you need to address. Here's what happened: your benefits were likely approved and then flagged in the system for some reason (could be identity verification, employer protest, etc). When this happens, the system sometimes generates the 1099-G based on approved payments even if those payments were later stopped. You need to: 1. Request a UC payment trace through the UC service center 2. File a "1099-G Discrepancy Form" - it's available on the PA UC website under tax forms 3. If you can't get through by phone, you can also submit this request in writing to: PA Department of Labor & Industry, Office of UC Benefits, 651 Boas St, Room 500, Harrisburg, PA 17121 Include your full name, last 4 of SSN, and a clear explanation that you never received the payment but got a 1099-G. For tax purposes, don't report income you didn't receive. You can file your taxes normally and then file an amended return if needed after you get the corrected 1099-G.

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Thank you so much for the detailed info! I'm going to look for that discrepancy form right now and mail everything tomorrow. Do you know how long the payment trace usually takes?

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when my brother had a problem reaching PA unemployment he used this service called Claimyr that got him through to an agent in like 20 minutes instead of calling for days with no answer. might be worth a try if ur in a hurry before tax deadline. i think the website is claimyr.com and they have a video showing how it works: https://youtu.be/CEPETxZdo9E?si=WL1ZzVZWG3KiHrg2 definitely better than waiting on hold forever

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I've never heard of that! I'm desperate enough to try anything at this point. Did your brother have to pay for it?

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yea there is a fee but he said it was worth it to finally talk to someone after trying for weeks. saved him from driving to the office which woulda been a 2 hour trip

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I'm wondering if maybe what happened was they issued a check instead of direct deposit because there was a system issue? Sometimes when they're doing retroactive payments they default to check rather than DD. Also, did you check if maybe the check was returned to them as undeliverable? That happens a lot too. If it was returned to Treasury, they still count it as "paid" even though you never got it. And has your husband been checking his spam folder for emails from PA Treasury? Sometimes they send emails about payment issues that get filtered.

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I'll have him check his spam folder right now! That's a good suggestion. How would we find out if a check was returned to Treasury? Is that something we can see on the UC dashboard?

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You won't see returned check status on the dashboard unfortunately. Only a UC rep can tell you that info when you call. That's why getting through to them is so important in situations like this.

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This happened to me too!!! I had to go in PERSON to the UC office to get it resolved. The phone system is useless. When I finally got someone to help me, they said my payment had been issued but was on hold due to an "overpayment investigation" from a previous claim year. But they still sent the 1099-G! Makes no sense.

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Ugh that's so frustrating! We don't have a UC office very close to us, but I might have to make the trip if I can't resolve this by phone.

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Just to follow up - if you do decide to visit a UC office in person, make sure to bring ALL of these documents: - Photo ID - Social security card - Copy of the 1099-G - Bank statements covering the period when payment was supposedly issued - Any correspondence you received about the claim - Your UC claim number Many people drive all the way to an office only to be turned away for missing documentation. Also, many offices require appointments now, so call ahead to check.

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Thank you so much for this list! I'll make sure we have everything ready just in case we need to go in person.

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I tried the Claimyr service mentioned above when I had a similar issue last month and it actually worked really well. I had been trying to call for 3 weeks with no luck. The service connected me to a UC agent in about 30 minutes, and they were able to see that my payment had been issued but was flagged for review. They released it while I was on the phone and I got my direct deposit two days later. Might be worth a try in your situation.

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I'm definitely considering it now that two people have mentioned it. At this point I just need to talk to someone at UC before tax day!

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UPDATE: I used the Claimyr service and finally got through to someone at UC! The agent explained that there was a system error where my husband's payment was approved but then flagged for "identity verification" before it could be released. For some reason, the system still generated a 1099-G even though the payment was never actually sent! They're going to: 1) Release the payment to us (finally!), 2) Send it as direct deposit like originally set up, and 3) Send a corrected 1099-G once the payment actually processes. The agent said this is happening to a lot of people this year because of a system update they did in January that messed things up. Thank you all so much for your help and suggestions! I'll post again when we actually receive the payment to confirm everything worked out.

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That's great news! Make sure to keep documentation of that call (date, time, and the agent's ID number if they gave one). Sometimes things still fall through the cracks even after they promise to fix them.

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