Clark Howard issues warning about unemployment tax scam

The deadline to file your taxes is coming up, but with so many people receiving unemployment benefits last year there are some scams circulating.

Our Consumer Warrior Clark Howard says one in particular involves a 1099G form. He says you’ll receive the form that says you owe tax on unemployment insurance you never got.

“That’s how you know you’re a victim of unemployment identity fraud,” Clark says.

He says the best thing to do is to contact your state department of unemployment, but that’s going to be tricky right now.

“They do a corrected form to the feds when you file your federal tax return,” Clark says.

He says whatever you do, don’t report the income from the 1099G if you never actually received it.

“The feds say eventually this will all straighten itself out, but in the meantime, it looks like you had income you didn’t have,” Clark says.

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