Unemployment benefits are considered regular income and are subject to federal income tax, but are exempt from Montana income tax.
This includes benefits received under regular unemployment insurance, any special unemployment compensations authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act or Continued Assistance for Unemployed Workers Act of 2020, and the Lost Wages Assistance (LWA) and Interim Pandemic Assistance (IPA) programs.
The 1099-G is a form taxpayers receive that documents these payments from state government, including under regular UI, pandemic, and additional benefit programs. Those who received this form will need it to file their tax returns.
- Learn more about the Form 1099-G and Unemployment Benefits.
- Learn more about taxability and compensation of Unemployment Benefits.
If you have further questions about your 1099-G, call the Montana Department of Labor & Industry at (406) 444-2556.
Those who receive a 1099-G form from DLI but did not file for unemployment benefits are likely victims of identity theft. Anyone who suspects fraud should call (406) 444-0072.