Arizona Department of Economic Security
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Return-to-Work Bonuses

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Announcements

  • Arizona’s Return-to-Work Bonus program has ended and has stopped accepting applications in December of 2021.
  • DES has mailed 1099-MISC Tax Forms to individuals who received Arizona’s Return to Work Bonus. Learn more.

Contact Us

The RTWB program has ended and DES is no longer accepting applications. If you received the RTWB and have questions about your payment, email [email protected]. For questions about the 1099-MISC Tax Form, see the 1099-MISC FAQs below.

1099-MISC Tax Form

DES has mailed 1099-MISC tax forms to individuals who received the Return to Work Bonus in 2021.

1099-MISC Inquiry - Report any issues regarding your 1099-MISC form

If you received Arizona’s Return to Work Bonus in 2021 and you do not receive a 1099-MISC form by February 28, 2022, please submit a report to DES. 
 
You may also submit a report if you:

  • Received a 1099-MISC, but the TIN (SSN or EIN), address, name or amount was incorrect
  • Received a 1099-MISC issued in my name, but I never applied for the Return-to-Work Bonus 
  • Received a 1099-MISC issued to an unknown individual who does not currently live at this mailing address

1099-M Frequently Asked Questions

What is the difference between a 1099-G and 1099-MISC form?
A 1099-G is related to the unemployment program. A 1099-MISC form is for anything outside of unemployment. One example of someone receiving a 1099-MISC would be those who received a Return-to-Work Bonus.

Why am I receiving a 1099-MISC?
If you were issued a Return-to-Work Bonus payment, you should have received a 1099-MISC.

I received both a 1099-G and a 1099-MISC, are they the same?
No. A 1099-G form is related to the unemployment program and a 1099-MISC form is anything outside of unemployment benefits, such as a Return-to-Work Bonus. Please review any 1099s received from the State of Arizona for details and call the phone number listed on the form if you have questions. For all other tax-related questions, please contact your tax advisor.

I never received a 1099-MISC - how do I get one?
DES has mailed 1099-MISC forms to individuals who received Return-to-Work Bonus payments in 2021. If you received Arizona’s Return to Work Bonus in 2021 and you do not receive a 1099-MISC form by February 28, 2022, please submit a report to DES. If you received a Return-to-Work Bonus payment in 2022, you will receive the 1099-MISC form in the mail in January 2023.

The amount, name or other information on my 1099-MISC is incorrect. What do I do?
If the information listed on your 1099-MISC form is incorrect, please submit a report to the DES.

I received a 1099-MISC, but I never applied for anything. What do I do?
If you received a 1099-MISC form, but you never applied for Arizona’s Return to Work Bonus, please submit a report to the DES.

What is DES’ address associated with my 1099-MISC form?
State of Arizona
Department of Economic Security
P.O. Box 6123 - Mail Drop 589C
Phoenix, Arizona 85005-6123

Eligibility

In 2021, individuals were eligible for the Return-to-Work Bonus if they:

  • Were an Arizona resident;
  • Received or filed and were determined eligible for unemployment benefits in Arizona on May 8, 2021 or May 15, 2021;
  • Returned to the workforce between May 13, 2021 and September 6, 2021 and were no longer receiving unemployment benefits;
  • Were employed for 8 weeks;
  • Earned $77,000 or less annually; and
  • Had not previously received the Return-to-Work Bonus.

In order to be eligible for the Return-to-Work Bonus, individuals must have returned to verifiable employment in Arizona. For employment verification, individuals must have provided the following:

  • An employer to contact that is not the applicant
  • Either a home (if working remotely) or business address within Arizona
  • Pay stubs OR another form of proof that shows that 8 weeks of employment with pay has been completed.

Payments

Eligible individuals that returned to work between May 13, 2021 and September 6, 2021 and worked for 8 weeks were eligible to receive $2,000.

Bonuses were awarded after the individual stopped receiving unemployment benefits and completed the work requirements with a qualifying employer. DES issued payments via direct deposit.

Frequently Asked Questions (FAQs)

Eligibility

Do I have to start working by a certain date?

Yes. Individuals must have met all eligibility criteria and returned to work (or increase hours) at a qualifying job between May 13, 2021 and September 6, 2021.

I applied for benefits on or before May 15, 2021 but did not receive benefits until a later date. Am I still eligible for the bonus?

Potentially. Individuals must have applied and been eligible for unemployment benefits for Benefit Week Ending May 8, 2021 or May 15, 2021 but may have received benefits in a later week.

Am I able to receive the part-time return to work bonus and a partial UI benefit for the same weeks?

No. Individuals must have stopped receiving unemployment benefits in order to be eligible for the Return-to-Work Bonus.

Are self-employed individuals or contractors eligible?

Yes. Self-employed gig workers or contractors could have qualified for the bonus after working for 8 weeks.

Are Shared Work claimants eligible if they return to work full time?

Potentially. All individuals who met eligibility requirements, stopped receiving unemployment benefits, and returned to qualifying employment were eligible for the Return-to-Work Bonus.

Can I have two or more part-time jobs to qualify for the bonus?

Yes. If you met all eligibility criteria and worked two part-time qualifying jobs for 8 weeks, you were eligible for the $2,000 bonus payment.

Can I change jobs and still get the bonus?

Yes. As long as you have stopped receiving unemployment benefits and completed 8 weeks of work at a qualifying job, you would have been eligible for the bonus even if you switched jobs.

When will I receive my bonus?

If you qualified, DES issued your one-time bonus payment in full approximately 2 weeks after you were determined eligible and you verified your bank information. Bank processing times vary.

Taxes and Other Programs

Is the bonus considered taxable income?

Yes. Individuals who received the Return-to-Work Bonus have been mailed a 1099-MISC from the DES in early 2022 to report this payment to the IRS.

Can I elect to deduct taxes from my payment?

No. Individuals who received the Return-to-Work Bonus received a 1099-MISC from DES in early 2022 to report this payment to the IRS.

Was Child Support withdrawn from my bonus?

No. The Return-to-Work Bonus was not subject to Child Support intercept.

Was the bonus considered income for purposes of the Supplemental Nutrition Assistance Program (SNAP) Temporary Assistance for Needy Families (TANF) Cash Assistance, and Medicaid eligibility (AHCCCS)?

The Return-to-Work Bonus was not countable as income for either the SNAP or TANF programs.

The Return-to-Work Bonus was countable income for AHCCCS Medical Assistance. This one time payment was counted as income in the month it was received.

Is there a set amount of funding being allocated for Return-to-Work Bonus? Or does everyone who meets the eligibility criteria receive the bonus?

Governor Doug Ducey set aside $300 million to provide Return-to-Work Bonuses to eligible Arizona workers. Bonuses were awarded until November 15, 2021.

Am I able to participate in more than one of the Back to Work services?

Yes. An individual can participate in any of the services for which they are eligible. This means an individual could have received the Return-to-Work Bonus, child care assistance, and education incentives.

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