You are receiving this letter because you collected unemployment insurance benefits from the Vermont Department of Labor (VDOL) during the 2020 calendar year.
The Department recently recalled all VDOL 1099-G documents previously issued because they may contain inaccurate information. In the coming days you will receive a new 1099 from the Department and will need to use the new form when filing your taxes. You will receive a separate 1099 for each program you received benefits from.
UNEMPLOYMENT PROGRAMS
(Programs are noted in the bottom left-hand corner of the 1099)
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001-UI 1099 – This document represents regular Unemployment Insurance (UI) benefits received in 2020, including extended benefit weeks, and the additional $600 added to weekly benefits during April 4 through July 31.
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002-PUA 1099 – This document represents Pandemic Unemployment Assistance (PUA) benefits received in 2020, including the additional $600 added to weekly benefits during April 4 through July 31.
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003-LWA 1099* – This document represents Lost Wage Assistance (LWA) benefits received in 2020. This was a federal program which provided an additional $300 per week to eligible unemployment claimants between August 1 and September 5. This payment was mailed in a check, separate from weekly benefit payments.
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004-VSTS 1099* – This document represents Vermont Short Term Supplemental (VSTS) benefits received in 2020. This program provided an additional $100 per week to claimants between September 27 and October 31. This payment was mailed in a check, separate from weekly benefit payments.
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005-TREAS 1099* – This document represents a one-time payment of $1,200 issued by the State on April 20. This prepayment was for Vermonters who had filed for unemployment benefits between March 15 and April 4 but had not yet received any benefit payments. (Only 8000 claimants fell into this category, so if you do not receive this 1099, you likely did not get that prepayment)
*IMPORTANT NOTE*
Taxes were not withheld from LWA, VSTS, or TREAS payments. That means if you received these benefits you will need to pay state and federal income taxes on them.