Mysterious Tax Form 1099? You may be the victim of identity theft


It’s the W-2 and 1099 season, when companies send you tax returns for what you earned last year.

But check these statements carefully. Some people receive 1099 forms stating that they have earned unemployment benefits even though they have never applied for unemployment.

Joe McFarland struggles to understand what appears in his family’s mail.

Her long-retired mother received a Form 1099 claiming she received thousands of dollars in unemployment last year from her condition.

“She got an unemployment 1099,” McFarland said. “But she’s 87 and hasn’t worked for years.”

But as if that weren’t enough, he says, “yesterday my wife had one too.”

This shows that she received $ 11,000 in unemployment benefits in 2020.

The only problem: his wife was gainfully employed and never asked for help.

“No, she never applied, never won anything,” he said.

What do these forms mean

Unfortunately, these forms are not fake in most cases. And this is certainly not a joke.

If the 1099 includes your name, address, and the last 4 digits of your Social, that likely means someone has filed for unemployment under your name, according to state unemployment officials.

Thomas Betti, spokesperson for Ohio’s Job and Family Services, says there’s a good chance your Social Security number was stolen in a data breach.

“They are probably victims of identity theft,” he said.

And it’s not just in a state. Turns out, people across the country are getting 1,099 forms, from all states.

Betti says if you receive one, you should immediately go to your state’s unemployment website and file a fraud report.

The state can then send a corrected 1099 to the IRS that shows you have not received benefits.

“We will send them a corrected Form 1099 that says zero,” Betti said.

In the meantime, said Betti, you do not report it on your Tax Form 1040, or the IRS will assume that you received this money.

McFarland thinks it is outrageous that someone can apply for benefits on your behalf. But they can and do.

Finally, this is a scam where you don’t want to just tear or shred the form because a copy is on its way to the IRS.

And unless you corrected it, the IRS will want you to pay taxes on the money that went to a scammer.

Don’t Waste Your Money “is a registered trademark of Scripps Media, Inc. (” Scripps “).

Like “John Matarese Money on Facebook

Follow John on Instagram @johnmataresemoney

Follow Jean on Twitter (@JohnMatarese)

For more consumer information and money saving tips, visit

Source link

Leave A Reply

Your email address will not be published.