EDD releases information to help with tax preparation
–The California Employment Development Department (EDD) recently released new information resources to help people who received a Form 1099G prepare their 2020 tax returns. The Form 1099G information center is available on the EDD’s website, and includes shareable content about the Form 1099G process and steps that Californians can take if they suspect identity theft related to unemployment compensation.
The EDD issued a Form 1099G to individuals who received taxable unemployment benefits last year. California unemployment compensation is exempt from state income tax, but federal law requires it be reported to the Internal Revenue Service (IRS). The EDD regularly provides a Form 1099G to all individuals who received unemployment compensation in the prior year, including income from some types of State Disability Insurance and Paid Family Leave benefits. The 2020 Form 1099G also reflects the $600 and $300 federal additional assistance payments,
which are taxable.
“The EDD is committed to helping the record number of Californians who received unemployment benefits last year become familiar with the annual Form 1099G process,” said Rita Saenz, director of the California Employment Development Department. “Part of this effort is working with residents who may receive a Form 1099G who could be victims of fraudulent activity or identity theft. This critical work is just one part of EDD’s pledge to address unemployment benefit fraud and find new ways to stay ahead of sophisticated criminal activity.”
The new Form 1099G information center provides an explanation about what to expect on a Form 1099G and how to request a copy if needed. Other materials include answers to frequently asked questions, a video about How to Access Tax Information using UI Online, and a printable one-page guide to use as a helpful handout.
Information resources include a printable guide about unemployment benefits fraud, steps that Californians may take if they suspect identity theft, how to how to file a fraud report, how to correct personal information to mitigate tax liability, and how to request an amended Form 1099G to submit to the IRS. These resources may be used and shared by elected officials, consumer advocates, tax preparers, and others to help their constituents and clients understand and manage a Form 1099G.
People who suspect they have been victim of fraud are encouraged to notify the EDD using the department’s convenient Ask EDD webpage. The EDD also offers a helpline for people who do not agree with the information on their Form 1099G or believe they have been victim of fraud. Representatives may be reached at 1-866-401-2849, Monday through Friday, between 8 a.m. and 5 p.m. The EDD also offers a self-serve phone line for information: 1-866-333-4606.