New York Unemployment 1099-G Tax Form

Unemployment benefits are taxable income — at the federal level, at the New York State level, and potentially at the local level too. A lot of people don't realize this until tax season, when a Form 1099-G shows up reporting thousands of dollars they didn't set aside money to cover.

Yes, You Pay Taxes on Unemployment

Unemployment compensation is generally taxable for federal and New York State income tax purposes. Whether you owe tax depends on your full return, including your total income and deductions. New York City and Yonkers local income taxes may also apply where relevant.

Voluntary Withholding During Your Claim

NYSDOL lets you elect voluntary tax withholding when you certify for weekly benefits or through the online portal settings:

• Federal withholding: A flat 10% of your gross weekly benefit amount
• New York State withholding: A flat 2.5% of your gross weekly benefit amount

Combined, that's 12.5% of each payment — which won't necessarily cover your full tax liability, depending on your filing status and total income for the year, but it prevents a large lump-sum bill.

If you didn't set up withholding and you've already received benefits, it's not too late to turn it on for remaining weeks. You can adjust the setting through your NYSDOL online account.

Your 1099-G Form

By January 31 of the year following the calendar year you received benefits, NYSDOL makes your Form 1099-G available for download through the Unemployment Services online portal. The form reports the total unemployment compensation paid to you during the tax year and any federal and state taxes that were withheld.

For a 2025 federal return, report Box 1 of Form 1099-G on Schedule 1 (Form 1040), line 7; the Schedule 1 total carries to Form 1040, line 8. For another tax year, check that year's IRS instructions.

If the 1099-G Amount Is Wrong

Check the figure against your actual payment records — weekly certification history, bank deposit statements, or debit card transaction records. If the amount doesn't match what you actually received, contact NYSDOL to request a corrected 1099-G. Common causes of discrepancies include overpayment adjustments, repaid benefits that weren't credited, or payments that crossed calendar years.

If you received a 1099-G but never actually filed for unemployment, that's a red flag for identity theft. Report it to NYSDOL immediately through their fraud reporting process.

Planning Ahead

If you're currently receiving benefits and haven't set up withholding, estimate your tax using your full-year income and filing situation; a flat set-aside can be too high or too low. The IRS says you may use Form W-4V for federal withholding or make estimated tax payments. If you were employed part of the year and collected benefits for the rest, consider whether to adjust withholding at a new job or make estimated payments.

The New York Unemployment Claims Guide walks through the full claiming process including how tax withholding interacts with your weekly certification.

See more New York guides →