Box 3 states the tax year during which you earned the income in Box 2.A box near the top right states the calendar year for the form.You’ll see two boxes that indicate dates: The situation depends on whether you took a federal deduction for paying certain taxes in a prior year. Keep in mind that you may not have to report this amount on your federal tax return. You technically got this money as a tax refund, but it was applied to something else (such as past-due child support). This box will be filled out if you got money back on your taxes - often through a refund, but sometimes through a credit (such as the Earned Income Tax Credit). Tip: You don’t need to attach Form 1099-G to file your finalized taxes, but you should keep it for your records! Box 2: State or Local Income Tax Refunds, Credits or Offsets You’ll add up all these numbers from every Form 1099-G you receive and list the total on the unemployment compensation line of your tax return. Box 1: Unemployment Compensationĭid you receive more than $10 in unemployment benefits from your state? If so, your total unemployment amount will appear in Box 1.

That information can be beneficial if you’re wondering whether unemployment insurance or other income will impact federal income tax, state income tax, or both. This section, located at the top left corner of the form, tells you which government body sent the tax form. It’s easy to look at all those numbers and feel a little lost - so here’s a breakdown of Form 1099-G: Payer Information Just about every tax form has a list of boxes with various dollar amounts. If you receive a 1099-G reporting a state income tax refund and didn’t deduct state and local income taxes as an itemized deduction last year, then you don’t need to pay taxes on it even though you received a Form 1099-G. In some situations, the IRS also stated state payments will not be included for federal tax purposes if the payment is a refund of state taxes paid and either the recipient claimed the standard deduction or itemized their deductions but did not receive a tax benefit. The IRS provided guidance related to these payments issued in certain states and said the payments would not be taxable as they are payments related to general welfare and disaster relief. Especially in the case of the recent special tax refunds or payments made by certain states related to the pandemic. There are some situations where you may receive a Form 1099-G, but the income reported is not taxable. Just keep in mind that unemployment compensation and tax refunds can be considered “income” - which, in turn, impacts your taxable income overall. What Else Should You Know?įorm 1099-G isn’t that different from any other IRS form. Two common examples of income reported on a form 1099-G are unemployment benefits and previous income tax refunds. You’ll get Form 1099-G if you received any of the above payments from the government. Who Sends It?Ī W-2 comes from your employer, while a Form 1099-G is sent by federal, state or local governments. If you receive the form, the government is telling you that you need to report this money on your state or federal income tax return. Reemployment trade adjustment assistance (RTAA) payments.State or local income tax refunds, credits or offsets.According to the Internal Revenue Service (IRS), this money can include:

Let’s take a closer look: What Is This Form?įorm 1099-G is called Certain Government Payments because it’s just that - documentation of money you received from the government. If you got Form 1099-G for the first time or haven’t gotten one in a while, you might have some questions. Here’s your quick guide to Tax Form 1099-G and what it means for your taxes. So what is this 1099-G? Who gets it and why? And perhaps most importantly, what are you supposed to do with it?

One example is Tax Form 1099-G, sometimes called “Certain Government Payments” - and it may be less familiar than the classic W-2. During tax time, you’ll likely have multiple forms to keep track of.

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