There are two types of people required to use 1099 statements when they file their income tax returns. These two types of people are independent contractors and unemployment benefit recipients from any state, including Kentucky.
If you received unemployment benefits in 2006, you should have received a Kentucky 1099 form in January 2007. If not, contact the Kentucky Dept. of Labor, and you will receive a duplicate. Everyone must have a 1099 form to report unearned income.
Independent contractors also use 1099 forms. Most don’t pay taxes on their income when they receive it. Even if they don’t pay taxes right away, they’re still required by law to pay federal and state taxes. In order to pay their taxes, independent contractors need some sort of record of their income. This is what the 1099 statement does. If their earnings are high enough, independent contractors are required to pay quarterly estimated income tax payments.
All Kentucky unemployment benefit recipients also require 1099 forms. There are a few recipients who had their taxes withheld from their unemployment benefit checks. These people are still required to send 1099 statements with their tax returns. After all, you have no other way of proving your tax payments.
The Kentucky unemployment office issued 1099 statements in January to all people who received unemployment benefits in 2006. Each of these 1099 statements has information about benefit earnings and benefit deductions. Benefit deductions include such payments as court ordered restitution and court ordered child support. This information is also provided by the state to the Kentucky Dept. of Revenue and the IRS.
Individuals who need or want for their own records 1099s from previous years can receive those as well. To get 1099s from previous years the individual simply needs to contact the nearest Kentucky Dept. of Labor office and make the request.