Indiana Unemployment

Independent contractors and unemployment benefit recipients have something in common when it comes to their taxes. They both need a 1099 form when it comes time to file their state and federal taxes.

If an individual collected any unemployment benefits for any part of 2006, he or she needs to make sure that he or she has a 1099 form. The Indiana unemployment mailed 1099 statements in January 2007. This was sent to anyone who received unemployment benefits last year.

In many cases, those receiving unemployment benefits don’t have taxes taken out the money they receive. So come tax time, both need to pay the taxman. Independent contractors often don’t pay taxes up front on the money they make, either.

A few Indiana unemployment recipients choose to have taxes withheld immediately from their checks. This means that their checks are smaller when they get them because state and federal taxes have already been taken off. But this also means that they will probably not need to pay come tax time. Of course, as every knows, they still need to file a tax return.

Each 1099 statement given to a person who received unemployment benefits in 2006 will show the amount of benefits received. If applicable, it will also show any unearned compensation paid. Deductions such as court-ordered child support or restitution will also be shown on the 1099 statements.

People who haven’t received their 1099 forms can contact a local Indiana Dept. of Labor office. Anyone who hasn’t received a 1099 form, but collected unemployment benefits needs to make sure they have one of these forms. Requested forms are usually received within one week.

If an individual requires 1099 forms from previous years, a request can be made to a local Indiana Dept. of Labor office. The office will be easily able to send the forms. The state also provides complete information on unearned payments to the Indiana Dept. of Revenue and the IRS.