• Taxko Staff

NJ Unemployment 1099G emailed & No Federal Taxes withheld On $300/$600 PAU?


In this unemployment update, I wanted to let everyone know that NJ unemployment benefits are taxable. Here in NJ, unemployment benefits are not taxable but for federal unemployment benefits are considered income and need to be reported on our 2020 taxes.


State of NJ is coming into the future! It looks like they have started to email the form 1099-G to some taxpayers.


What to look for:

• The subject will say: Filing your 2020 taxes.

• It will come from the email address: UI-nonreply@dol.nj.gov.


The email is full of great information for taxpayers. The top two points that I feel you should be aware of are:


(1) Tax withheld of 10% was only on the NJ Unemployment Not on the PAU & FEMA Lost wages assistance - This is senseless! NJ is saying that the $600[PAU] or $300[FEMA] had no federal taxes withheld even if you were diligent to prepay your taxes. All taxpayers in some shape or form did not withhold the required minimum 10% federal tax on all the money. The sad truth is that this is common for most states.


(2) Taxpayers that get the email and did not apply for NJ Unemployment may be subject to ID Theft - We have seen the stories of scammers applying for unemployment under the name of taxpayers whose identity that were stolen. To add insult to injury, that unknowing taxpayer will get a 1099-G for money they did not actually receive.


You do have the following options:

• Call the NJ Fraud Hotline at: 609-777-4304

• File the IRS ID theft tax form and attach to your taxes (IRS form 14039).

• File the NJ ID theft tax form and send to NJ. (NJ form IDT-100).


If you do not get the email you can still download the form 1099-G at this link.


You will have to update your username and password to get in. Do not use the username and password you had in 2020.

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