Unemployment benefits are taxable income reportable to the Internal Revenue Service (IRS ) under federal law. You must report all unemployment benefits you receive to the IRS on your federal tax return.
Withholding Taxes from Your Payments
If you are receiving benefits, you may have federal income taxes withheld from your unemployment benefit payments. If you ask us to withhold taxes, we will withhold ten percent of the gross amount of each payment before sending it to you.
To start or stop federal tax withholding for unemployment benefit payments while you are receiving benefits, complete and return TWC ’s federal tax withholding form .
Information Needed for Your Federal Income Tax Return
Each January, we mail an IRS Form 1099-G to individuals we paid unemployment benefits during the prior calendar year. The 1099-G form provides information you need to report your benefits. Use the information from the form, but do not attach a copy of the 1099-G to your federal income tax return because TWC has already reported the 1099-G information to the IRS . You can file your federal tax return without a 1099-G form, as explained below in Filing Your Return Without Your 1099-G .
A 1099-G form is a federal tax form that lists the total amount of benefits TWC paid you, including:
- Unemployment benefits (both regular and federal extended benefits)
- Federal income tax withheld from unemployment benefits, if any
- Child support payments deducted from your benefits
- Alternative Trade Adjustment Assistance (ATAA ) and Reemployment Trade Adjustment Assistance (TAA ) payments
Reporting Your Benefits
When you report the unemployment benefits we paid you:
- Enter the TWC Federal ID number as 74-2764775.
- Enter the amount of taxes withheld at your request, if any.
- Report the amount of benefits we paid you on the designated line of your income tax return, as shown in the IRS instructions
for your type of tax return.
For more information on how to report unemployment benefits on your federal income tax return, see the IRS Instructions or consult the IRS or a tax professional.
If You Received an Overpayment
The amount we list on your 1099-G includes any overpaid benefits. We report the total amount of benefits we paid you in the previous calendar year, regardless of whether you repaid any overpayment.
If you repaid part or all of an overpayment. the IRS allows you to deduct the repaid amounts on your income tax return. For more information on deducting an overpayment on your tax return, see the IRS Instructions or contact the IRS or a tax professional.
Filing Your Return Without Your 1099-G
You can file your federal tax return without a 1099-G form as long as you know:
- The total amount of unemployment benefits we paid you during the previous calendar year.
- The amount of federal taxes withheld, if any, during the previous year.
- TWC ’s Federal ID Number, 74-2764775.
You do not need to attach the 1099-G form to your federal income tax return. If you are required to file a state income tax return, you may need to attach a copy of the 1099-G to your state return. Check your state’s instructions on how to complete the state income tax return.
Some professional tax preparers may require a paper copy of your 1099-G form when completing your federal tax return for you.
The Getting IRS 1099-G Information section below tells you how to find the total amount of benefits we paid you, online or by phone.
Getting IRS 1099-G Information
Find the total benefits TWC paid you last year and the amount of federal taxes we withheld, online or by phone.
Beginning January 15, you can find your payment and tax information through Unemployment Benefits Services: