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Be sure to look for your tax form if you received unemployment in 2020
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Be sure to look for your tax form if you received unemployment in 2020

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A copy of a IRS 1040 tax form is seen at an H&R Block office on the day President Donald Trump signed the Republican tax cut bill in Washington, DC on December 22, 2017 in Miami, Florida. 

In 2020, the U.S. saw widespread joblessness and business closures making tax prep this year a bit complicated. Im not an expert, but we spoke with a lot of them, and asked: Will unemployment benefits be taxed? "The simple answer is yes," said Mark Steber, chief tax information officer at Jackson Hewitt.However, this only applies to people who didnt choose to have taxes withdrawn from their benefits. Typically, not withdrawing doesnt add up to a big tax bill. But this year could be different.  "Because these benefits were so much larger than they normally are, an awful lot of people will end up having some taxes owed on those benefits," said Nathan Rigney, principal tax research analyst at H&R Block.So if you didnt choose to withdraw taxes when you filed for unemployment, make sure you have all the proper documentation for both state and federal benefits."Taxpayers who received unemployment benefits will have to look for more than one tax document this year. And they may even have to go to the state website and download it," Steber said.For more information on the 2020 tax season, visit newsy.com/TaxingTimes. SEE MORE: Taxing Times: Will My Stimulus Be Taxed?

The Nebraska Department of Labor has issued 1099-G tax forms to unemployment claimants who received benefits in 2020.

The forms are normally released in January, but the IRS granted the department’s request for a 30-day delay while additional fraud checks were performed.

The forms are sent via the claimant’s preferred delivery method, but can be downloaded at NEworks.nebraska.gov.

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Unemployment fraud through identity theft has been prevalent nationwide throughout the pandemic. Any individual who received a 1099-G from the Labor Department, but did not file an unemployment claim, should report suspected fraud by emailing NDOL.1099fraud@nebraska.gov and filing a police report.

Resources for reporting identity theft and fraud:

Internal Revenue Service: irs.gov/newsroom/taxpayer-guide-to-identity-theft

Federal Trade Commission: identitytheft.gov/Information

US Department of Justice: justice.gov/disaster-fraud/ncdf-disaster-complaint-form

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