MICHIGAN, USA — The Michigan's Unemployment Insurance Agency (UIA) has been overwhelmed since the start of the pandemic.
More Michiganders than ever before relied on unemployment benefits to keep rent paid and food on the table. And because of that, the agency needed extra time to send out tax information ahead of the filing deadline.
For tax year 2020, pandemic unemployment benefits were not considered taxable income thanks to the American Rescue Plan Act. For tax year 2021, that is no longer the case. Because of that, anyone who claimed unemployment last year needs to add information from a 1099-G to their taxes.
After missing the original deadline of January 31, the UIA promised to have the forms sent out in February through the online MiWAM portal, which they have delivered on.
Loribeth Clark, a self employed artist from Muskegon, was one of the many Michiganders eagerly awaiting that form to file as soon as she could. But when her 1099-G form finally arrived, the numbers didn't match up.
"It's kind of confusing and distressing after all the trouble I've had," Clark said. She was one of thousands told they needed to pay back their benefits because of UIA errors in setting qualifications. She was told she needed to pay $32,000.
Clark says she was careful to select withholding on all of her benefits, saying she didn't want to get hit with that bill come April. When she finally got her 1099-G, it showed she had not withheld a penny. She sent documents to 13 On Your Side which show she did correctly select withholding, making the tax form incorrect.
We Asked the UIA what the procedure is for correcting errors like this. They say anyone given incorrect tax forms can get them corrected through the UIA website. Following this link, you'll have to scroll down a bit to find the section titled "request a corrected 1099-G"
The UIA spokesperson says, "UIA staff will review the form and issue a corrected 1099-G, if necessary."
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