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IRS Form 1099-G

IRS Form 1099-G
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Updated December 04, 2023

IRS Form 1099-G, also known as a Certain Government Payments form, is a tax document that a government agency uses to report subsidy payments, such as unemployment compensation, made to a taxpayer in the previous year. Copies of the 1099-G are filed with the IRS and sent to the taxpayer.

Table of Contents

Who Uses a 1099-G?

An officer or employee of a federal, state, or local government agency completes and files Form 1099-G, then sends copies of the completed form to the IRS and the taxpayer whose income is being reported.

The taxpayer uses Form 1099-G to fill out their annual income tax return, or Form 1040.

Deadlines

The deadline for sending Form 1099-G to a taxpayer is January 31 the year after the payments were made. Completed forms must be filed with the IRS by February 28, and by March 31 if filed electronically.[1]

1099-G vs. 1099-MISC vs. 1099-NEC

There’s a whole suite of 1099 forms, which are means of reporting certain types of income. Whereas the W2 form tracks income earned by full- or part-time employees, 1099 forms record other types of income, such as rent and contract-based payments.

1099-G: Used to report monies received from government agencies such as unemployment compensation and tax refunds.
1099-MISC: Used to report miscellaneous payments such as rent, royalties, prizes, fishing boat and crop insurance proceeds, awards, and more.
1099-NEC: Used to report nonemployee compensation, or payments over $600 made to independent contractors, freelancers, consultants, and other service providers.

1099-G Form Parts (15)

Bear in mind that states can issue their versions of the 1099-G, so not all forms look identical. Below are parts most Certain Government Payments forms include.

1. Payer’s Information

The form asks for information about the payer, or the agency completing the form, including its address, phone number, and Taxpayer Identification Number (TIN).

2. Recipient’s Information

The form also asks for information about the recipient, or the taxpayer to whom subsidies were paid, including their TIN. A TIN can take the form of a social security number, individual taxpayer identification number, adoption taxpayer identification number, or employer identification number.[2]

3. Account Number

An account number must be inputted if the recipient is receiving multiple 1099-G forms from the same agency. This section does not have to be completed otherwise.

4. Box 1

This is the space in which to input the total amount of unemployment compensation, which includes Railroad Retirement Board payments for unemployment, totaling $10 or more. Use the amount paid before any taxes were withheld.[3]

5. Box 2

Box 2 records income tax refunds, credits, or offsets received from state and local agencies of $10 or more. Credits are typically payments made through a state-run incentive or subsidy program, such as filmmaker incentive credits, home improvement credits for low-income areas, and solar panel installation credits.

6. Box 3

Box 3 is used to input the tax year for which the payments noted in Box 2 were made. No entry is required if the refund, credit, or offset is for the current tax year. If it is for any other tax year, enter the year for which the refund, credit, or offset was made using the format “YYYY” to make the entry in this box. For example, enter “2020,” not “20.”

7. Box 4

This box asks for the amount of any tax on unemployment compensation, Commodity Credit Corporation loans, or crop disaster payments that the taxpayer requested the government withhold.

8. Box 5

In Box 5, input the amount of reemployment trade adjustment assistance, or wage subsidies for eligible workers who are at least 50 years old, paid to the taxpayer during the previous year if it was more than $600.[4]

9. Box 6

If any taxable grants of $600 or more were received from government agencies in the previous year, their values will be recorded here.

10. Box 7

This is the space for subsidies paid by the U.S. Department of Agriculture, including market facilitation program payments.

11. Box 8

Check this box if the income tax refunds, credits, or offsets noted in Box 2 constitute trade or business income.

12. Box 9

This box records any market gain associated with the repayment of a CCC loan.[5]

13. Box 10a

In Box 10a, input the abbreviation for the state reporting payments.

14. Box 10b

Here, include the state’s identification number, which is also the filer’s identification number.

15. Box 11

This is the space in which to include the amount of income tax withheld by the state in which the taxpayer resides.

Instructions for Filers (4 Steps)

1. Obtain the Form

Officers of government agencies can obtain the 1099-G form applicable in their state or through the IRS. This downloadable packet from the IRS includes a sample form in red font that should not be used. There are penalties for filing it.

2. Furnish a Copy to the Recipient

A copy of the 1099-G must be furnished to the taxpayer whose income is being reported. The recipient does not have to attach the 1099-G to their tax return but should make sure that the numbers on the 1099-G match the numbers on their tax return, so it’s important to furnish them with a copy by the deadline.

3. File with the IRS

Forms can be filed with the IRS through a private delivery service or by mail. Filing paper versions of any 1099 requires also filing Form 1096.
The 1099-G can be filed electronically through the IRS Filing Information Returns Electronically (FIRE) system or the IRS Affordable Care Act Information Returns (AIR) program. There is a different deadline for electronic filings.

4. Retain a Copy

Copies of information returns filed with the IRS should be retained for at least three years.[6]

Frequently Asked Questions (FAQs)

Where do I get my 1099-G?

Taxpayers who received unemployment compensation or another type of income covered by a 1099-G during the previous year will receive a completed form in the mail. For a duplicate copy, contact a state unemployment agency or the agency that paid the benefits during the tax year.

Will I get caught if I don’t report the income documented on a 1099-G?

It’s certainly possible. The IRS will compare the amount declared by the state agency that filed the 1099-G against the income claimed on a taxpayer’s annual tax return. If the figures don’t match, the taxpayer could be retroactively charged penalties and interest.

What do I do if I receive a 1099-G containing false information?

Scammers have figured out how to steal an identity and use it to file false claims for unemployment checks from the government. This means that a taxpayer could receive a 1099-G form documenting the amount paid to them that year even if they did not receive any payments.

Check any 1099-G form received in the mail carefully. If the number in Box 1 looks fishy, contact the agency that issued the form, such as a state unemployment agency, to report the fraud and request another form showing $0 in Box 1. This will be filed with the IRS as well.

This is a strong indicator that there has been an identity theft. For more information, visit Identity Theft Central, an online guide to tax fraud.[7]

Sources

  1. IRS – General Information Returns Deadlines
  2. IRS – Taxpayer Identification Numbers
  3. U.S. Railroad Retirement Board – Railroad Unemployment Benefits
  4. U.S. Department of Labor – RTAA 
  5. USDA – CCC Loans
  6. IRS – Retaining Records
  7. IRS – Guidance on Identity Theft