Be alert for fraudulent Forms 1099-G

Scammers filed fraudulent claims for unemployment compensation using stolen personal information.

Affected clients may get an incorrect Form 1099-G from the Minnesota Department of Employment and Economic Development for unemployment benefits they did not receive.

What should clients do if they get an incorrect 1099-G?
They should:

• Contact Minnesota Unemployment to report possible unemployment insurance fraud
• Request a revised 1099-G showing they did not receive unemployment benefits
• Keep the revised 1099-G for their records

If clients cannot get a corrected 1099-G before filing their tax return, they should only report the income they received.

What if clients get a legitimate 1099-G?
They should file as they normally would. Unemployment compensation is taxable income and should be included in household income.

A legitimate 1099-G should include any of these:

• Minnesota Unemployment Insurance benefits
• Federal Pandemic Unemployment Compensation ($600 a week)
• Lost Wages Assistance Program payments ($300 a week)

 

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