What This Means for You
- If you received Unemployment Compensation in 2025, you will need a 1099-G form to file your 2026 tax return.
- A new Working Pennsylvanians Tax Credit could provide up to $805 in refundable state tax relief.
- If you receive a 1099-G but did not collect benefits, you should report possible identity theft immediately.
HARRISBURG, PA — Pennsylvanians who received Unemployment Compensation benefits in 2025 must use a state-issued 1099-G form to complete their tax returns this year, and many working families may also qualify for a new refundable tax credit worth up to $805.
The Pennsylvania Department of Labor & Industry is urging residents to review their 1099-G forms early to avoid filing delays and to check eligibility for the new Working Pennsylvanians Tax Credit.
What Is a 1099-G?
A 1099-G is a tax form that reports certain government payments, including Unemployment Compensation. Because unemployment benefits are considered taxable income for federal and Pennsylvania state taxes, the form is required when filing a return.
Forms are now available through claimants’ online Unemployment Compensation dashboards, and paper copies are being mailed over the coming weeks.
The department has posted a frequently asked questions page at https://www.pa.gov/agencies/dli/resources/ to help residents review their forms and request corrections if necessary.
Watch for Identity Theft
Because 1099-G forms are automatically generated, receiving one without having filed for Unemployment Compensation could indicate identity theft.
State officials advise anyone who believes their identity was used fraudulently to report it immediately online or by calling the Pennsylvania Fraud Hotline at 1-800-692-7469.
Victims are instructed not to delay filing their tax returns and to report only their actual income, not any fraudulent benefits listed on the form. Additional information is available through the Internal Revenue Service.
New Working Pennsylvanians Tax Credit
This tax season marks the first year eligible residents may claim the Working Pennsylvanians Tax Credit, a refundable state credit designed to supplement income for working families.
A refundable credit means taxpayers can receive the credit even if they owe no Pennsylvania income tax.
The new credit equals 10 percent of the federal Earned Income Tax Credit, commonly known as the EITC, which is a federal tax benefit for low- to moderate-income workers. Depending on eligibility, the state credit could provide up to $805.
Residents who qualify for the federal EITC will automatically receive the state credit when filing their federal and Pennsylvania returns online at the same time.
The Pennsylvania Department of Revenue provides an online eligibility calculator and filing guidance at https://www.pa.gov/agencies/revenue/resources/.
How to Claim the Credit
State officials recommend filing federal and state returns electronically at the same time and ensuring the Department of Revenue receives a copy of the federal Form 1040.
Residents with questions about their Unemployment Compensation tax forms may contact the UC Helpline at 888-313-7284, email UCHelp@pa.gov, or use live chat at https://www.pa.gov/agencies/dli/programs-services/.
Officials said early review of tax forms and awareness of the new credit can help eligible taxpayers file accurately and potentially receive additional financial relief this season.
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