If you received unemployment in 2020 you will be receiving a 1099-G tax form in the mail sometime this month, which is used to file your tax returns.

Taxpayers who receive Forms 1099-G for unemployment benefits they did not actually get because of identity theft to contact their appropriate state agency for a corrected form. States issue Forms 1099-G to the taxpayer and to the IRS to report what taxable income, such as refunds or unemployment benefits, were issued by state agencies.

During 2020, millions of taxpayers were impacted by the COVID-19 pandemic through job loss or reduced work hours. Some taxpayers who faced unemployment or reduced work hours applied for and received unemployment compensation from their state. Under federal law, unemployment benefits are taxable income. However, scammers also took advantage of the pandemic by filing fraudulent claims for unemployment compensation using stolen personal information of individuals who had not filed claims. Payments made as a result of these fraudulent claims went to the identity thieves, and the individuals whose names and personal information were taken did not receive any of the payments.

Taxpayers who receive an incorrect Form 1099-G for unemployment benefits they did not receive should contact the issuing state agency to request a revised Form 1099-G showing they did not receive these benefits. Taxpayers who are unable to obtain a timely, corrected form from states should still file an accurate tax return, reporting only the income they received. A corrected Form 1099-G showing zero unemployment benefits in cases of identity theft will help taxpayers avoid being hit with an unexpected federal tax bill for unreported income.

The state has created an online portal at unemployment.ohio.gov for Ohioans to notify the agency if they believe their identity was stolen or used to file a fraudulent unemployment claim. You can click on the “Report Identity Theft” button to complete the reporting form. Once the completed form is received, ODJFS will process it and proceed with an investigation. If necessary, the agency will also issue a correction to the IRS pertaining to 1099-G that was issued.

You should consider the following preventive measures to mitigate identity fraud in the future.

• Keep your Social Security card in a secure location
• Use discretion when it comes to sharing your Social Security Number, or your birthday, or your bank account number with anybody.
• Collect your mail every day. And when you can’t, place a hold on it to avoid key pieces of your personal identification from falling into the wrong hands.
• Use proven online security features, including two-factor authentication, firewalls, VPNs, etc.
• Review your credit card and bank account statements regularly and watch for unauthorized transactions.
• Create complex passphrases. 
• Check your credit reports annually.