Unemployment updates

Latest updates at the DUA including information on the American Rescue Plan Act, identity verification, fraud prevention, and 1099-G forms. Learn more.

Updated: Mar. 16th, 2021, 9:50 am

CARES Act extension

  • Learn more about the American Rescue Plan Act CARES Act unemployment extension provisions.
  • NOTE: It is important to remember that all claimants are required to file a new claim after their prior claim expires (benefit year end date). If not monetarily eligible, the prior claim will be active to receive any available extensions. If the new claim is monetarily eligible, but the weekly benefit allowance (WBA) is more than $25 less than the WBA on the prior claim, that claim will be active to receive Pandemic Emergency Unemployment Compensation (PEUC) (only PEUC, does not apply to a claimant receiving Extended Benefits prior to claim expiring).

Important updates

1099-G forms

1099-G forms for 2020 are available on UI Online. DUA will complete its mailing of the 1099-G forms to claimants by January 31, 2021. 

  • Log in to your UI Online account to access your 1099-G form.
  • Claimants who received only PUA benefits in 2020 can call 617-626-5647 to request another copy by mail.
  • If you received a 1099-G and you did NOT receive unemployment or PUA benefits in 2020, please complete our secure form to alert us.

Unemployment tax relief

On April 1, 2021, Governor Baker signed legislation which allows taxpayers with household income up to 200% of the federal poverty level to deduct up to $10,200 of unemployment compensation from taxable income on their Massachusetts tax return.   The deduction may be claimed by each eligible individual for tax years 2020 and 2021.  Federal law allows a deduction of up to $10,200 if your federal adjusted gross income is less than $150,000.  Since the Massachusetts income threshold is different from the federal income threshold, you may be eligible for a deduction on your federal tax return, but not on your Massachusetts tax return. 

If you have already filed your 2020 Massachusetts income tax return and you believe you are eligible for this deduction, there is no need to file an amended return. The Massachusetts Department of Revenue (DOR) will recalculate all tax returns that included unemployment income and will adjust your return if you are eligible. If your return is adjusted, your reported tax for 2020 will be reduced and you may be entitled to a refund.  If you have no outstanding liabilities, DOR will mail the refund directly to you.  DOR expects to begin issuing these refunds in mid-May and will provide updates about when you can expect to receive them in the FAQs on their website.      

If you have not filed your 2020 Massachusetts income tax return yet, you should report the full amount of your unemployment income on your Massachusetts return using line 8a on resident tax returns (Form 1) or line 10a on nonresident/part-year resident tax returns (Form NR/PY).   If you are eligible for a deduction, you should report the amount of the allowable deduction on Schedule Y, line 9.    

You can find more information about the new deduction in the FAQs on DOR’s website.  If you have any other questions or concerns, please contact DOR at (617) 887-6367 or online through your MassTaxConnect account.

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