Nj Labor Department Clarifies Unemployment Certifying Process
Goal is to get New Jersey claimants Paid Without Delay
TRENTON With more than 600,000 people now collecting unemployment in New Jersey, the Department of Labor is helping claimants through the process of certifying for weekly benefits so they receive payment without delay.
The US Labor Department requires unemployment recipients to certify for benefits each week. In New Jersey, that means answering seven questions and attesting to the truthfulness of the answers.
But, the certification questions have proven an obstacle for tens of thousands of filers per week because of their work situation. For example, a worker who expects to be recalled to their job after COVID-19 should nonetheless answer yes to the question, Were you actively seeking work?
Answering the certifying questions incorrectly will delay payment of benefits.
Thats why the Labor Department has created a how-to guide to walk claimants through the questions. The how-to guide pops up whenever claimants certify for weekly benefits online, and requires them to check a box verifying that they have read the guide. It is also available on the Departments website.
The department urges everyone to read the guide before certifying for benefits.
Claimants receive an email when their payment is issued.
The certification questions and interpretations are as follows:
Question 1 Were you able and available for work?
The answer to this question should be YES if:
Should I File An Amended Return Because Of The Unemployment Tax Change
“The IRS strongly urges taxpayers to not file amended returns related to the new legislative provisions or take other unnecessary steps at this time,” the IRS wrote in a statement on March 12.
For families that already filed taxes but did not claim the tax benefit, the IRS may be able to adjust the returns and will issue a second refund, said IRS Commissioner Charles Rettig.
We believe we will be able to monitor and we will be able to announce that individuals will not have to file amended returns to be able to take the exclusion for the $10,200 per person, Rettig told lawmakers. “We believe that we will be able to automatically issue refunds associated with the $10,200.
Do I Have To Pay Taxes On Business Relief Loans
Paycheck Protection Program loans are exempt from federal and state taxes, and small businesses can deduct business expenses that were paid with tax-exempt loan proceeds for both state and federal tax purposes, under the federal appropriations act that reauthorized the PPP program and a February announcement by Murphy.
This decision is designed to help already beleaguered small businesses, which are the majority of recipients of these loans, Murphy said. Its no secret that New Jersey has been one of the hardest hit states by COVID-19 and our small businesses have shouldered the brunt of it. PPP loans helped many stay afloat and this move will provide added benefit to help them weather this storm.
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Irs Information For Employers
Employers are often the first line of defense against unemployment fraud. Employers should:
- Respond quickly to state notices that its employees have filed for unemployment claims, especially if the names on the notices are not employees
- Be alert to misuse of the IRS-issued Employer Identification Number that fraudsters may use to file jobless claims
- File a Form 14039-B PDF, Business Identity Theft Affidavit, if the companys EIN is being used to generate fraudulent unemployment benefit claims.
- Write to the IRS to close out the business tax account if the company is going out of business this will help curtail the misuse of dormant EINs.
How Can I Appeal A Denial Of My Claim
If you are denied benefits, you have the right to appeal the decision.
When you file an initial claim, you will receive a written decision by mail. If you are denied benefits or disagree with the determination, you must appeal in writing either by writing a letter or by using the states online form. You must appeal within 10 calendar days of the date of the determination. The appeal period will be extended only if you can show good cause for the delay.
If you file an appeal, you will get a notice with the details of when your hearing will take place in front of an Appeal Tribunal. Most are done by phone. After the hearing, the Appeal Tribunal will issue a written decision. If it rules in your favor, your benefits will begin to be processed within 7 days.
If the Appeal Tribunal rules against you, you can appeal to the Board of Review within 20 days of the mailing date of the Appeal Tribunals decision. Board of Review appeal instructions will be included in this mailing.
If you are turned down by the Board of Review, you can appeal that decision to the Appellate Division of the New Jersey Superior Court.
You can get more information about the appeals process here.
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Your New York State Form 1099
Your New York State Form 1099-G statement reflects the amount of state and local taxes you overpaid through withholding or estimated tax payments. For most people, the amount shown on their 2021 New York State Form 1099-G statement is the same as the 2020 New York State income tax refund they actually received.
If you do not have a New York State Form 1099-G statement, even though you received a refund, or your New York State Form 1099-G statement amount is different from your refund amount, see More information about 1099-G.
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Irs: Unemployment Compensation Is Taxable Have Tax Withheld Now And Avoid A Tax
IR-2020-185, August 18, 2020
WASHINGTON With millions of Americans now receiving taxable unemployment compensation, many of them for the first time, the Internal Revenue Service today reminded people receiving unemployment compensation that they can have tax withheld from their benefits now to help avoid owing taxes on this income when they file their federal income tax return next year.
Withholding is voluntary. Federal law allows any recipient to choose to have a flat 10% withheld from their benefits to cover part or all of their tax liability. To do that, fill out Form W-4V, Voluntary Withholding Request, and give it to the agency paying the benefits. Dont send it to the IRS. If the payor has its own withholding request form, use it instead.
If a recipient doesnt choose withholding, or if withholding is not enough, they can make quarterly estimated tax payments instead. The payment for the first two quarters of 2020 was due on July 15. Third and fourth quarter payments are due on September 15, 2020, and January 15, 2021, respectively. For more information, including some helpful worksheets, see Form 1040-ES and Publication 505, available on IRS.gov.
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Can I Still File A Claim For Back Dated Benefit Payments
If you believe your claim should be backdated, youll need to contact the NJ DOL who will then schedule a fact-finding interview to determine if your claim can be backdated. You will still be able to receive benefits for weeks prior to September 4, if you are found eligible for a claim filed before September 4, 2021
If you are currently in an appeal or adjudication process, or have an appointment scheduled after the Sept. 4 program expiry, you should continue to certify weekly, follow NJ DOL instructions and monitor your email.
Claimants with pending decisions may still be paid retroactively for weeks before September 4th, 2021, if they are later deemed eligible.
Note that funds that appear as remaining in your unemployment account related to the federal enhanced unemployment programs will not be available for certification or payment for weeks of unemployment ending after September 4, 2021.
How To Get Your W
You might still be able to get your W-2 data electronically if, for whatever reason, it didnt work out with your employer or the IRS. The authorized IRS e-file providers H& R Block and TurboTax provide a free W-2 form finder.
Depending on the availability of these documents from your financial institution and employer, this feature will allow you to find and import your W-2 online.
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How Do I Get My Unemployment Tax Form
to request a copy of your 1099-G by mail or fax. If you havent received your 1099-G copy in the mail by Jan. 31, there is a chance your copy was lost in transit. Your local office will be able to send a replacement copy in the mail then, you will be able to file a complete and accurate tax return.
Contact the IRS at 800-829-1040 to request a copy of your wage and income information. You can also use Form 4506-T to request a copy of your previous years 1099-G. You can download Form 4506-T at IRS.gov or order it from 800-TAX-FORM. Mail the completed form to the IRS office that processes returns for your area. If you are not sure which office it is, check the Form 4506-T instructions.
Are There Other Tax Changes I Should Know About
For the 2020 tax year, 60,000 more New Jersey taxpayers are eligible for the New Jersey Earned Income Tax Credit because the state lowered the eligibility age from 25 to 21.
The federal government and New Jersey each offer this tax credit to low- and moderate-income households, which can help reduce the amount of taxes you owe or increase your refund check. To see if you qualify for the federal earned income credit, visit .
New Jersey estimates that 25% of eligible New Jersey taxpayers never apply for the New Jersey earned income tax credit. In 2020, New Jerseyans will receive 40% of the federal tax credit, an average savings of $882, according to the state.
In practice, if your federal tax credit was $4,000, your state tax credit would be $1,600.
To learn more about the New Jersey earned income tax credit, call 609-943-1040 or visit .
Ashley Balcerzak is a reporter in the New Jersey Statehouse. For unlimited access to her work covering New Jerseys Legislature and political power structure, please subscribe or activate your digital account today.
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You May Be A Victim Of Unemployment Identity Theft If You Received:
- Mail from a government agency about an unemployment claim or payment and you did not recently file for unemployment benefits. This includes unexpected payments or debit cards and could be from any state.
- An IRS Form 1099-G reflecting unemployment benefits you weren’t expecting. Box 1 on this form may show unemployment benefits you did not receive or an amount that exceeds your records for the unemployment benefits you did receive. The form itself may be from a state in which you did not file for benefits.
- While you are still employed, a notice from your employer indicating that your employer received a request for information about an unemployment claim in your name.
Request Your Unemployment Benefit Statement Online
Because unemployment benefits are taxable, any unemployment compensation received during the year must be reported on your federal tax return. If you received unemployment benefits in 2020, you will receive Form 1099-G Certain Government Payments .
The statements, called 1099-G or âCertain Government Payments,â are prepared by UIA and report how much individuals received in unemployment benefits and income tax withheld last year.
You can choose to receive your 1099-G, electronically through MiWAM or by U.S. mail.
To receive your 1099-G electronically, you must request your delivery preference by January 9, 2021. Your statement will be available to view or download by mid-January. If you do not select electronic, you will automatically receive a paper copy by mail.
To receive your 1099-G online:
1 Log into MiWAM
2 Under Account Alerts, click Please select a delivery preference for your 1099 Form
3 Under Delivery Preference for Form 1099-G, click Electronic. Your email address will be displayed.
4 â Review and Submit. You will receive an email acknowledging your delivery preference.
To receive your copy by mail, follow the steps above and select paper as your delivery preference.
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Note On Taxable Income
The American Rescue Plan Act of 2021 contains provisions regarding taxable unemployment compensation. Please direct all tax filing questions to the IRS, and visit their website for the most recent guidance.
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What If I Dont Have My W
Form W-2, Wage and Tax Statement, shows your income and the taxes withheld from your pay for the year. Most people get their W-2 forms by the end of January. You need it to file an accurate tax return.
If you need a copy of your W-2, heres what you should do:
Visit the IRS website for more information.
The New Jersey Division of Taxation is unable to provide you with a copy of your W-2.
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Can U Get My W2 From My Unemployment
You do not get a W-2 for unemployment benefits. You get a 1099G, and no, TurboTax cannot get it for you. You have to get it yourself. Usually you need to go to the stateâs unemployment web site to get it and print it out. To enter it on your tax return, go to Federal> Wages & Income> Unemployment /Government benefits on Form 1099G
There are some employers who make W-2âs available for import to TurboTax, but not all do this. And it is late in the year, so it might not even still be available for import at this time. You might have to ask your employer for a copy of the W-2 that was issued in January.
Free Federal Tax Filing Services
The IRS offers free services to help you with your federal tax return. Free File is a service available through the IRS that offers free federal tax preparation and e-file options for all taxpayers. Free File is available in English and Spanish. To learn more about Free File and your free filing options, visit www.irs.gov/uac/free-file-do-your-federal-taxes-for-free.
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Closing Nj Unemployment And Withholding Accounts
Please follow the steps outlined below to close your NJ Unemployment and Withholding accounts:
To close your Unemployment Account:
- If you need to verify the status of your account, you can visit the NJ Division of Revenue site. This is the site where you file you returns, but you can also use it to verify the status of you account.
Close your withholding account:
Option 1: Submit an Online Registration Change indicating the date on which payment of wages ceased.
- When in the online portal, please select “End Tax Eligibility” option.
- Then under “Select a tax” select “Giter/UI/DI” and indicate the date on which payment of wages ceased.
Option 2: Send a Request for Change of Registration Information by mail to indicate the date on which operations ceased.
If youre having trouble completing the online account setup process, please contact the states customer service line for assistance.
Division Of Unemployment Insurance
“My benefits are ending. Are other resources available?”
See links to assistance with food, housing, child care, health, and more.
“Why canât I claim my remaining UI balance?”
For PUA/PEUC recipients, the balance represents the maximum that was available for weeks of unemployment before 9/4/21.
“How do you verify my identity?”
To reduce the risk of fraud, many unemployment claimants must verify their identity using the security vendor ID.me.
“How can I reset my PIN or password?”
We can help if you’re having trouble with your online account password and/or PIN to certify for weekly benefits.
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Unemployment Program Extensions Under Covid Relief Bill
The $900 billion COVID-19 relief package was passed into law on Dec. 27, 2020, which among several other pandemic relief measures extends and provides additional federal funding for enhanced unemployment benefits. This includes the Pandemic Unemployment Assistance , Pandemic Emergency Unemployment Compensation and a reinstatement, but halving of the Federal Pandemic Unemployment Compensation Program which provides a $300 supplemental weekly unemployment payment. I have also posted this video discussing the frustrations around the current $300 payment!
These programs have been funded and extended for 11 weeks , covering the weeks of December 27th, 2020 to March 14th, 2021. To receive FPUC benefits, you must be receiving regular UI, PEUC, EB, or PUA.
NJ DOL 2021 11-week Extension Payment Details and Updates on $300 FPUC, PUA and PEUC
NJDOL has successfully completed programming for the 11-week benefit extension for the over 75,000 expired PUA and PEUC claims. Claimants who had been waiting and are eligible to claim these 11-weeks should have been notified by email and can certify during their regular schedule once the extended weeks are added to their claim balance. If you have not received your notification AND cannot certify in the next few days your claim is likely held up due to additional manual processing/verification or you were deemed ineligible. Some examples are further discussed in the comments below.
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Faq: Paying Federal Income Tax On Your Unemployment Insurance Benefits
Although the state of New Jersey does not tax Unemployment Insurance benefits, they are subject to federal income taxes.
For important information on the 2020 tax year, click here.
Below are answers to frequently asked questions about benefit payments and taxes.
I received a 1099-G but did not receive Unemployment Insurance compensation payments in 2020. What does this mean?
If you receive a 1099-G but did not receive Unemployment Insurance compensation payments in 2020, you may be the victim of identity theft. Please report your case of suspected fraud as soon as possible online or by calling our fraud hotline at 609-777-4304.
What if the amounts on my 1099-G form are not correct?
Please note: Your 1099-G reflects the total amount paid to you in 2020, regardless of the week that payment represents.
Meaning, if you were paid in 2020 for weeks of unemployment benefits from 2019, those will appear on your 1099-G for 2020. Similarly, if you were paid for 2020 weeks in 2021, those will not be on your 1099-G for 2020 they will appear on your 1099-G for 2021.
If you were overpaid benefits, your 1099-G will still reflect, per federal law, the amount of funds paid to you, regardless of any funds you have returned. Please refer to the section titled Repayments in the IRS Publication 525 Taxable and Nontaxable Income for guidance on how to report overpayments/returned funds.
How can I find out the balance of my Unemployment Insurance claim, and the year-to-date taxes withheld?
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