Unemployment Benefits are Taxable

The State of Michigan has recently mailed out year-end statements to anyone who received unemployment benefits in 2006. The statements, entitled 1099-G or “Statement for Recipients of Unemployment Compensation Payments”, are required in order to prepare 2006 state and federal tax returns. If workers chose to have state and federal income taxes deducted from their unemployment benefits in 2006, the 1099-G reports the amount of taxes withheld. These annual statements are prepared by the Unemployment Insurance Agency (UIA). Any questions regarding the statements should be directed to the following UIA toll-free hotlines:

• Telephone Filed Claims - 1.866.500.0017 (Mon-Fri, 8:00 a.m. – 4:30 p.m.)
• Customer Relations – 1.800.638.3995 (Mon-Fri, 7:00 a.m. – 7:00 p.m.)