Can I leave unemployment benefits off my 1040 if it makes no difference in my refund amount?

Question

I really need my tax refund ASAP. I have a simple return, and the only item I lack is the 1099-G form from my state (NC) that shows some unemployment insurance benefits I received last year. That state office reports that they won't have these forms out to recipients or available on their website until January 31st. Reporting this income made absolutely no difference when I did my 1040 online, because my total income for last year was so low, and I'm a single mom, head of household. I know the amount I received in benefits, and that I paid no taxes on it, but the 1040 asks for other identifying info and numbers that I don't have. Can I just leave the UIB off the return, or put it somewhere else on the 1040?

Answer 1

Probably don't want to do that. Look at your last unemployment receipt if you still have it, it should have the total amount that you were paid as well as any taxes that were taken out. It's better to include everything that you get than to get pegged for something later that you didn't add.

Answer 2

If you received it as income, you must report it on your income tax filing. Pure and simple. Whether it's taxable or not is neither here nor there.

Thing is, if they audit you a few years from now and find out that you did not claim income that you received, you will be charged for any taxable portion plus interest (which over a few years can really add up).

I had a similar situation where I was working multiple jobs and missed one of my W-2s while preparing my return. If I had included it in that tax year, I would have been refunded something like an extra $30. Since I forgot to include it, though, they took the taxable amount and compounded the interest in the audit that was run four years later...I wound up paying nearly $200 for something that I should have gotten a refund for.

Just report it. If you don't have exactly the right numbers, you can file and amended return later, but if you leave it off entirely, you will get fined for failure to report income.

Answer 3

The IRS will have a copy of the amount of your unemployment and it is required to be on your 1040 regardless of if it makes a difference on your refund. You cannot put it anywhere other than where it belongs on the 1040. Not putting it on there will result in nasty messages and possibly an audit from the IRS. A possibility you have to get the money if you need it so despreratly is do a loan from one of the tax preparation companies that will estimate the amount of you refund and off you a loan based on that amount until you receive your 1099G

Answer 4

No, you have to report everything if you file or are required to file. Leaving something off will end up getting you a letter from the IRS asking about it, although it might take awhile and might or might not hold up any refund that you have coming.

You said you received unemp benefits last year also. If you know the amount for this year, and have the 1099 you got from them last year, you could get the identifying numbers from last year's form, they'll be the same.

Good luck.

Answer 5

The state should be able to verbally provide you with the amount you received in unemployment. They also should be able to give you the identifying numbers. If they won't give you the amount received but will give you the numbers (they dont' change from year to year) then go ahead and give it your best guess and file away. Do not file without those amounts even if you think they won't make a difference. Then, when you receive the real numbers file an amended return. But, you must be careful....You'd be better served to OVERESTIMATE the amount received. IRS will NOT be happy if you amend and owe them money. They will charge you interest.

Answer 6

Even though the unemployment compensation itself may not increase your tax, it may change your refund by reducing your Earned Income Credit.

The credit is computed using your earned income, then recomputed using your earned income plus unemployment compensation, and you get whatever is less. So by not reporting your unemployment compensation, you may get a larger refund than you should. You would likely be receiving a letter, and you may find that this causes you difficulty in the future regarding receipt of the EIC.

Declare your unemployment compensation on your tax return to avoid filing an incorrect return.

Answer 7

The Con/Dems have set themselves a real conundrum here. They want to get people off benefits and into work. The problem is that some people who are on benefits and are able to work would be worse off if they get a job. As I see it there are a number of options. 1: Reduce benefits. Problem. That would create real hardship for those who are genuine. 2. Force those who are able to work, to work. Problem. There simply isn't enough jobs to go round. 3. Increase the minimum wage to make work more attractive. Problem. The Tories along with their pals the CBI were strongly opposed to the minimum wage and would love to scrap it. I am confident that at the end of the day they will find a solution. Problem. Those in work and those on benefits will be worse off.

Answer 8

By law you have to include UIB on your return. Do you have a 1099G for last year or know somebody who has one that you can take the necessary information from? If not perhaps the UI office in your city can provide you with the necessary info. If not why don't you post a question here on Yahoo Answers and ask if anybody has the name, address, zip and ID# for the state in which you live? I could give you the information for Montana or Idaho; that two states.

Answer 9

Put in on without the identifying numbers. That info is not really required to be a part of your return - it is just software questions.

Answer 10

The IRS isn't going to start processing returns much before February 3rd, so you might as well wait.