Form 1099-G is a tax form that shows certain government payments you received during the year, and it’s used when you file your federal tax return. It doesn’t come from your employer like a W‑2; it comes from a federal, state, or local agency.

What is a 1099-G?

Form 1099-G is titled “Certain Government Payments.” It tells you (and the IRS) how much you got from the government in categories that may be taxable or affect your tax return.

Common payments reported on 1099-G include:

  • Unemployment compensation.
  • State or local income tax refunds, credits, or offsets.
  • Taxable grants.
  • Certain agricultural payments and some specialized trade‑adjustment payments.

If a government agency made these kinds of payments to you over the year, they generally must issue you a 1099‑G and send a copy to the IRS.

What does a 1099-G look like?

The form includes:

  • Your name, address, and taxpayer ID.
  • The government payer’s name and ID.
  • Boxes with dollar amounts, such as:
    • Box 1: total unemployment compensation.
* Box 2: state or local income tax refunds, credits, or offsets.

* Other boxes for grants, agricultural payments, and state withholding.

These numbers are what you (or your tax software) plug into your tax return.

Why did I get a 1099-G?

You likely received a 1099‑G because:

  • You collected unemployment benefits during the year.
  • You got a state or local tax refund last year, and you itemized deductions the year before.
  • You received a taxable grant or agricultural/government program payment.

Agencies generally issue a 1099‑G once your payments reach at least a small minimum amount (for example, $10 for certain state tax refunds).

How does a 1099-G affect my taxes?

  • Unemployment reported in Box 1 is usually taxable federal income and must be reported on your Form 1040.
  • State or local tax refunds may be taxable if you itemized deductions in the prior year; they are often reported on Schedule 1.
  • Grants and other payments can also be taxable depending on what they were for.

If you use tax software, you normally just enter the 1099‑G details, and the software routes it to the correct line.

Mini story: “Why is the IRS mailing me now?”

Imagine Alex, who lost a job early in the year and collected unemployment for several months. Alex later finds a 1099‑G in the mail and panics, thinking it’s a bill. In reality, the form just summarizes how much unemployment Alex received so that amount can be reported as income on the tax return; after entering the numbers into tax software, everything balances out and the “mystery form” is handled.

Quick FAQ

Do I “fill out” a 1099-G?
No. The government agency fills it out and sends it to you; you only use the information on your tax return.

What if I think my 1099-G is wrong or I never claimed unemployment?
Contact the issuing agency immediately; incorrect 1099‑G forms can indicate an error or possible identity theft.

Do I always owe tax if I get a 1099-G?
Not always. Some refunds may or may not be taxable depending on whether you itemized; some payments might be partially or fully nontaxable based on your situation.

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Form 1099-G is a tax form that reports government payments like unemployment benefits and state tax refunds. Learn what 1099‑G is, why you received it, and how it affects your taxes.

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