Massachusetts Unemployment

The Massachusetts Dept. of Labor urges workers to check that they have received their 1099 form. As the deadline for filing taxes draws near, it is important to remember that Massachusetts unemployment payments must be claimed as income and are, therefore, subject to taxation. Unemployment earnings are recorded on a 1099-G form, which you should have received from the Massachusetts Department of Labor.

A 1099-G is a “Statement for Recipients of Unemployment Compensation Payments.” The Massachusetts Department of Labor mailed 1099-G statements to anyone who received unemployment benefits in 2006, during the month of January. Unemployed persons should have received their statement no later than February 15, 2007. If you have not received a 1099-G, and you collected unemployment for any part of 2006, you should contact the Massachusetts Department of Labor as soon as possible.

The 1099-G form is important for reporting your income accurately on your tax return. However, it is equally as important to understand what the amounts on the 1099-G mean. You will find a report of the amount you received in unemployment compensation last year. You will also see a report of any federal or state tax withholdings. If you chose to have state and federal taxes withheld from your payments, you will see the total amount reflected on your 1099.

Your total earnings (as reported on the 1099) may be higher than the payments you received. This can be confusing if you haven’t considered other deductions. If you kept track of your payments for unemployment in 2006, total them.

If the total amount you received does not match the total earnings reported on the 1099, it is most likely due to court ordered deductions or restitution you owe. Court ordered deductions could include “Friend of the Court” payments such as alimony you owe to a former spouse, child support payments you make to support your children, payments for health coverage for your children, and other payments due by court order.