Stephen Geskey, director of Michigan's Unemployment Insurance Agency, says unemployment benefits are taxable, and recipients will need 1099-G forms to prepare their 2009 state and federal tax returns.
LANSING -- The state has begun mailing year-end tax statements to approximately 913,000 people who received unemployment benefits in 2009.
Stephen Geskey, director of Michigan's Unemployment Insurance Agency, said unemployment benefits are taxable, and recipients will need 1099-G forms to prepare their 2009 state and federal tax returns.
The forms show how much individuals received in unemployment benefits last year. They also state how much in state and federal income taxes were deducted from a person's unemployment benefits, if the individual chose to have the taxes withheld.
Geskey says the American Recovery & Reinvestment Tax Act exempts the first $2,400 in unemployment benefits paid in 2009 from federal income taxes.
Persons who have created Web accounts with the agency can obtain the 1099-G forms online at http://www.michigan.gov/uia starting Jan. 28.
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