RI's unemployed to receive 1099 forms

PROVIDENCE, R.I. (WPRI) - With Rhode Island unemployment numbers hovering around 13 percent, the state Department of Labor and Training is gearing up to send out an unprecedented number of 1099 tax forms.

The forms are expected to be in the mail shortly. By law, those who have collected unemployment insurance in 2009 must submit one of the forms with their taxes.

"Any individual who collected unemployment insurance in 2009, whether for one week or one year, will receive a notice that indicates they have to file with with their federal and state return, the amount of unemployment benefits paid," said Ray Fillipone from the DLT.

The 1099 form includes figures that recipients will need to help them complete their federal and state income tax returns for 2009; including the total amount of jobless benefits received.

Last year, Rhode Island sent out 62,000 1099 forms. This year, 87,000 people are expected to get them.

"That's a large number," Fillipone said. "We also paid out $735 million, which is almost double the prior year."

A silver lining for those on unemployment - the federal government will not tax the first $2,400 in unemployment the full amount.

1099-G forms will be sent to the addresses DLT has on file. Those who have moved since the last time they received unemployment benefits will need to fill out a change of address form immediately.