Arizona Unemployment
February 26th, 2007 Posted by AmeliaDid you collect Arizona unemployment benefits last year? Many people have been laid off due to company downsizing. This happens every year to many. The disruption to income can be very stressful to deal with while searching for a new job, and that is why the government provides the unemployment benefit.
While some people have taxes withheld while receiving unemployment income, many do not. Taxes must be paid on the benefit. Forms numbered 1099 were mailed in January to those who collected Arizona unemployment benefits in 2006. This statement is a record of the total paid out, and any court ordered deductions and taxes withheld.
If you claimed unemployment benefits last year, you are responsible to pay taxes on the money. You should have gotten a 1099 statement from the Arizona department of labor by this point. If you did not get one, you should contact their office. Within one week of verifying your address with them, your form should arrive.
If you own a business, you may be issuing 1099 statements as well. This form can be used to record payments made to independent contractors, freelance workers, or anyone who provided service to the business that is not a regular employee. If you are the one who provided a personal service to a business, you may or may not receive this form. Regardless of the receipt of this statement, you will have to pay taxes on your income profits.
When filing taxes, be sure to include the income that is on your 1099. It is a government record created to assist you in keeping track of your income if you are not the employee of a business that will issue you a W-2. Both federal and state taxes may be required.
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