Payments

Table of Contents

Payment Options – IWD Debit Card or Direct Deposit 

IWD Debit Card

When you file an unemployment insurance claim and have selected to receive payment by a U.S. Bank ReliaCard®, a card will be mailed to you. The card will expire in three years, so please do not destroy the card. If you have received a card in the last three years, the card is still valid, and payments will be issued to that card. 

The benefit payment is deposited four to five business days after the weekly claim is filed, if all eligibility requirements are met. Holidays may delay the payment. 

The ReliaCard is issued and serviced by U.S. Bank. A new card may take up to 10 business days to arrive. Through the ReliaCard cardholder website, you can: 

  • Check your account balance 
  • Review transaction history 
  • Sign up for balance alerts (text messages and email) 
  • Sign up for notification of deposits by email 

You can also download the ReliaCard mobile app to manage your debit card. The ReliaCard customer service is available 24/7 for card inquiries at: 

  • 855.282.6161 
  • 855.282.6161 (TTY) 

www.usbankreliacard.com 

Important Information

  • Only IWD can update your personal information for the ReliaCard. 
  • Address or name changes should be reported to IWD. 
  • Card account balance and transaction history are not available to IWD staff. 

You must contact U.S. Bank to order a replacement card or to report a lost or stolen card. 

The ReliaCard is issued by U.S. Bank National Association pursuant to a license from Visa U.S.A Inc. © 2020 U.S. Bank. Member FDIC. 

Direct Deposit

You may choose to have your UI benefit payment(s) deposited directly into a checking or savings account. Payments are typically deposited four to five business days after filing your weekly claim, provided all eligibility requirements are met. Holidays may delay the payment. 

To receive payments via direct deposit, you must update your account information on the IWD website. IWD staff cannot update your account information for you. Before submitting your direct deposit details, you are responsible for verifying: 

  • The bank routing number of your financial institution 
  • The account number is correct and matches the account where you want the funds deposited. 

It is your responsibility to verify that the benefit payment was deposited into the correct account and to resolve any direct deposit issues with your bank. 

IWD is not responsible for incorrectly reported routing and/or account information. Payments deposited into the wrong account may delay your benefits and may not be able to be recovered.  

To protect sensitive information, IWD staff has limited access to updating account details and will not accept paper forms to change account information. If you choose not to update your account online, the IWD Debit Card will be used as the default payment method. 

Other Deductions

Child Support Deduction

The Child Support Recovery Unit may withhold up to 50 percent of your unemployment benefit payment for a child support obligation. You will be mailed a notice with the amount of the deduction and when that deduction will start. The amount withheld is included on your IRS Form 1099-G, since it was paid to another agency on your behalf. Requests to modify or stop the deductions must be made to the Child Support Recovery Unit or through the court system.

Overpayment

You are responsible for repaying any benefits that you were not eligible to receive. If you have a non-fraud overpayment, your future benefit payments will be used to offset the amount you owe.  

IWD will intercept state and federal tax returns, casino and lottery winnings, or other sources regardless of payment plan or payment history. 

As of July 1, 2018, if you have a fraud overpayment balance (including penalty, interest, and lien fees), you are not eligible for unemployment benefits until that balance is paid in full. You will not be paid for any weeks that you previously filed. Iowa unemployment benefit payments cannot be used to offset a fraud overpayment balance. Overpayments caused by fraud include a 15 percent penalty. 

Note: Overpayment amounts include the total payments you received, as well as payments made for tax withholdings or to the Child Support Recovery Unit. 

Unemployment Insurance Taxes

Unemployment insurance benefits are taxable. Payments of $10.00 or more are reported annually to the Internal Revenue Service and the Iowa Department of Revenue and Finance. You will receive an IRS Form 1099-G by January 31 each year. This form provides important tax information, including the total benefits paid during the tax year and the amount of state and federal taxes withheld. You must report this information on your state and federal income tax returns. 

You can choose to withhold 10 percent of your benefit payment for federal taxes and 5 percent for Iowa taxes. 

Note: Effective 2025, the state of Iowa has changed its tax withholding to 3.8%. Despite this change, IWD is required to continue withholding 5% due to the section of Iowa code that governs the agency. Until that separate section of code can be amended, IWD will continue to withhold at the required rate of 5% when a claimant elects state tax withholding. 

You will elect tax withholdings when you apply for unemployment insurance. To make changes in tax withholdings, you must submit the Tax Withholding Agreement Form 60-0351.

Note: The 1099-G will be mailed to the address on record. If you've changed your address since your last claim, update your mailing address with Iowa Workforce Development.