New York taxpayers who received unemployment compensation through the state Excluded Workers Fund will receive a Form 1099-G from the New York Department of Labor with the amount paid in Box 6 and New York taxes withheld in Box 11. This grant is taxable for both federal and state purposes, and per the New York Department of Taxation and Finance is treated as Other Income.
Entering this 1099-G in the tax return in TaxSlayer ProWeb requires one or two entries depending on the tax year.
- For tax years 2023 and forward, enter the Form 1099-G in its menu and the income will flow to Schedule 1 as Other Income.
- For tax years 2022 and prior, enter the Form 1099-G in its menu, then make a second entry for the Other Income.
Step 1: Enter the 1099-G
From the federal section of the tax return (Form 1040) select:
- Income
- Form 1099-G Box 1
- Add or Edit
Be sure to enter the New York Department of Labor EIN, the amount of the taxable grant, indicate taxes were withheld for the state of New York, repeat the EIN in the State ID no. field, and enter the amount of state tax withheld.
Step 2: (2022 and prior only) Enter the grant in Other Income
From the federal section of the tax return (Form 1040) select:
- Income
- Less Common Income
- Other Income Not Reported Elsewhere
- Indicate Taxpayer or Spouse if necessary.
- Other Income Description - Select Other Income
- Description of other income - Describe as appropriate, e.g., NY EWF.
- Amount of other income - Enter the amount in Box 6.