Form 1099-G: Certain Government Payments
Report unemployment compensation, state and local tax refunds, grants, and other government payments.
Filing Deadline
January 31 (to recipient) / February 28 (paper) or March 31 (e-file) to IRS
Common Uses
Unemployment benefits, state tax refunds, RTAA payments
Federal Withholding
May include voluntary federal tax withholding
Overview
Form 1099-G is used by government agencies to report certain payments to individuals, including unemployment compensation, state and local income tax refunds, credits or offsets, agricultural payments, and taxable grants.
This form is commonly issued by state unemployment agencies and state tax departments. Recipients use it to report taxable government payments on their federal income tax return.
Who Must File
Required Filers
- •Federal, state, and local government agencies
- •State unemployment compensation agencies reporting any unemployment benefits
- •State tax departments reporting state/local tax refunds of $10 or more
- •USDA reporting agricultural payments of $10 or more
- •Any agency paying taxable grants of $600 or more
Exceptions & Notes
- ✕Tax refunds under $10 don't require reporting (though many states report all amounts)
- ✕Payments to corporations generally not reported on 1099-G
Form Structure & Instructions
Here's what information is required in each section:
Payment Information
Details of government payments
Additional Payments
Other government payment types
Important Filing Notes
Unemployment Taxability
All unemployment compensation is taxable on federal returns. Recipients can choose to have federal income tax withheld (typically 10%).
State Tax Refund Rule
State tax refunds are only taxable if you itemized deductions in the prior year and received a tax benefit from state tax deductions.
Overpayments
If you repaid unemployment compensation in the same year, the 1099-G should show only the net amount. If repaid in a later year, you may claim a deduction.
Identity Theft
If you receive a 1099-G for unemployment benefits you didn't receive, report identity theft to the issuing agency immediately and follow IRS guidance.
Government Payment Reporting Made Simple
Whether you're reporting unemployment benefits, tax refunds, or agricultural payments, we ensure accurate and timely Form 1099-G filing.
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