What is a 1099-g?

Form 1099-G: Certain Government Payments Explained

Form 1099-G, Certain Government Payments, is an IRS form used to report certain payments you received from a federal, state, or local government agency. Here's a breakdown of what you need to know:

• What it Reports: This form typically reports unemployment compensation, state or local income tax refunds, credits, or offsets, and agricultural payments.

• Why You Receive It: If you received one of these types of government payments, the agency that made the payment is required to send you (and the IRS) a 1099-G form.

• Tax Implications: The payments reported on Form 1099-G might be taxable. For example, unemployment benefits are generally taxable at the federal level. Whether a state or local tax refund is taxable depends on whether you itemized deductions on your federal income tax return in the year you paid those taxes.

• Key Boxes on the Form:

  • Box 1: Unemployment Compensation: The total amount of unemployment benefits you received.
  • Box 2: State or Local Income Tax Refunds, Credits, or Offsets: The amount of any state or local income tax refund, credit, or offset you received.
  • Box 4: Federal Income Tax Withheld: The amount of federal income tax that was withheld from your unemployment benefits (if any).
  • Box 6: Agriculture Payments. The amount of agriculture payments you received.

• What to Do With It:

  • Review the Form: Make sure the information is correct, including your name, address, and taxpayer identification number (TIN).
  • Report on Your Tax Return: Use the information on Form 1099-G to complete your federal income tax return (typically Schedule 1 (Form 1040)).
  • Keep for Your Records: Store the form with your other tax documents.

• Incorrect Form: If you believe the information on your 1099-G is incorrect, contact the issuing agency immediately.

• Don't Receive a Form?: If you received government payments that should have been reported on a 1099-G, but you didn't receive the form, you are still responsible for reporting the income on your tax return. You may be able to access the form online from the issuing agency's website. Contact the agency if you can't get a copy.