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Arkansas 1099

February 26th, 2007 Posted by Amelia

Did you receive Arkansas unemployment benefits last year?

Anyone in the state who received unemployment benefits in 2006 was mailed an Arkansas 1099 statement from the state unemployment office this January. This is because the unemployment benefit payments are subject to tax.

Since the forms have been mailed, you should have gotten your form. Even if you didn’t get benefits for very long, you were still supposed to receive a 1099. Contact the Arkansas Department of Labor if you did not get it. It is an important form for you to have because any deductions from this income are listed and the total amount paid to you is recorded. Use this form as a guide when you file your taxes.

Other people who may receive 1099 forms are freelance workers or independent contractors. If taxes are not withheld when payment is issued, records of the amount paid should be kept. Work performed for a company that is compensated is all taxable, and therefore must be reported. The W-2 is used for regular employees that have taxes withheld from their paychecks throughout the year. Even if you worked for part of 2006 and received a W-2, you will still need a 1099 if you were paid unemployment benefits. Independent contractors need to report income profits regardless of whether or not 1099 statements are issued.

Many states offer the option of having taxes withheld from their unemployment benefits. While this is true, more often than not people choose not to have taxes withheld. It can be easy to forget that this income is taxable, and so the Arkansas Department of labor was sure to send 1099 statements to all individuals who claimed benefits.