Form 1099-G: Certain Government Payments

Form 1099-G is generally used to report certain government payments, including applicable unemployment compensation and certain state or local tax refunds.

Have questions about an IRS form? Contact us for assistance understanding your tax paperwork.

Introduction

Form 1099-G, Certain Government Payments, is generally used by government agencies to report certain payments made to taxpayers during the year. The form may include unemployment compensation, certain state or local income tax refunds, and other government payments that may be reportable.

A taxpayer who receives Form 1099-G should review the information and keep the statement with their tax records. Whether an amount shown on the form affects a taxpayer’s federal income tax return depends on the type of payment and the taxpayer’s individual circumstances.

What Is Form 1099-G?

Form 1099-G is an information statement used to report certain payments made by federal, state, or local governments. The form can provide information about payments or refunds that may need to be considered when preparing a federal income tax return.

Form 1099-G is generally prepared by the government agency or other applicable reporting entity rather than by the taxpayer. The taxpayer may use the information from the form when determining whether the reported amount needs to be included on a federal tax return.

Who Uses Form 1099-G?

Form 1099-G may be used by federal, state, or local government agencies and other applicable entities that make payments requiring information reporting.

Individuals and other taxpayers who receive qualifying government payments may receive Form 1099-G. Not every government payment results in a Form 1099-G, and the reporting requirements depend on the type of payment involved.

What Information Is Needed?

The information on Form 1099-G generally includes the taxpayer’s identifying information, the government payer’s information, the type and amount of payment, and other applicable information.

Taxpayers should compare Form 1099-G with government payment records, tax records, and other available documents. Keeping these records can help verify the amounts reported and determine how the information should be treated on a federal income tax return.

How to Fill Out/Complete Form 1099-G

Form 1099-G is generally completed by the government agency or other applicable payer rather than by the taxpayer. The form is prepared using the agency’s payment and reporting records.

Taxpayers who receive Form 1099-G generally use the information provided when preparing their federal income tax return. The applicable payment category should be reviewed because different types of government payments can have different tax treatment.

Section 1

Enter the applicable payer and recipient identifying information requested on Form 1099-G. This generally identifies the government agency and the taxpayer associated with the reported payment.

Review names, addresses, and taxpayer identification information carefully. Accurate identifying information can help ensure that the statement is associated with the correct taxpayer and payment.

Section 2

Enter the applicable amount of unemployment compensation when required. This section generally applies when qualifying unemployment benefits have been paid to the taxpayer.

Review the reported amount against unemployment payment records and other statements. Taxpayers should retain supporting documents with their tax records.

Section 3

Enter applicable state or local income tax refunds, credits, or offsets when required. These amounts may be relevant when determining whether a prior tax benefit affects the taxpayer’s federal income tax return.

Review the amount against state or local tax records. The federal tax treatment of a refund can depend on whether the taxpayer previously received a federal tax benefit for the related taxes.

Section 4

Enter any applicable federal income tax withheld from certain government payments. This information may be relevant when determining the amount of federal income tax already withheld.

Review the withholding amount against the taxpayer’s payment records. Any reported federal withholding should generally be considered when preparing the applicable federal income tax return.

Section 5

Complete any additional information requested on Form 1099-G that applies to the reported government payment. Different government payments may require different information.

Review the applicable fields and supporting records carefully. Not every section will apply to every taxpayer or government payment.

Final Review

Review Form 1099-G after all applicable information has been entered. Check the taxpayer information, government payer information, payment amounts, withholding, and other reported details.

A final review can help identify simple reporting errors before the information is used to prepare a tax return. Taxpayers should retain Form 1099-G and supporting payment records with their tax documents.

Common Mistakes

Common mistakes involving Form 1099-G may include reporting an incorrect payment amount, overlooking unemployment compensation, entering incorrect withholding information, or failing to review a reported state or local tax refund.

Another common mistake is assuming that every amount shown on Form 1099-G is automatically taxable. The federal tax treatment can depend on the type of payment and the taxpayer’s circumstances, including the treatment of related amounts in an earlier tax year.

Related IRS Forms

Form 1099-G may be associated with Form 1040 and other federal tax forms and schedules used to report government payments, unemployment compensation, refunds, and other income or tax items.

Other forms or schedules may apply depending on the type of government payment and the taxpayer’s circumstances. The specific forms required will vary from one taxpayer to another.

Where to File or Submit

Form 1099-G is generally prepared by the government agency or other applicable payer and furnished to the taxpayer when required. The taxpayer generally does not submit Form 1099-G as a separate federal tax return.

When applicable, the taxpayer uses the information from Form 1099-G when preparing their federal income tax return. The taxpayer should retain the statement with their government payment and tax records.

Current IRS Form & Instructions

Tax forms and instructions may change over time. Government agencies, payers, and taxpayers should use the version of Form 1099-G that applies to the applicable reporting period and tax year.

The information on this page is intentionally general so it can remain useful across multiple tax years. Before preparing or using Form 1099-G, users should review the applicable version of the form and its instructions because reporting requirements, government payment rules, refund treatment, and other tax procedures may change.

Important Information / Disclaimer

This page is provided for general informational and educational purposes and offers a basic overview of Form 1099-G. It is not intended to provide individualized tax, legal, accounting, unemployment, government benefit, or financial advice and should not be considered a substitute for professional guidance.

Federal tax laws, forms, information reporting requirements, unemployment compensation rules, refund rules, and filing procedures may change over time. Information that applies to one taxpayer, government payment, refund, agency, or tax year may not apply to another, so users should consider their individual circumstances and seek assistance from a qualified tax professional when appropriate.