What a 1099-G Form Reports and Who Receives One

A 1099-G reports government payments you received during the tax year

A 1099-G is a tax form that reports certain payments made to you by federal, state, or local government agencies. The form shows the total amount of money you got from programs like unemployment insurance, state tax refunds, agricultural payments, or other government sources. You receive a 1099-G when the payment amount meets a reporting threshold — usually $10 or more, though some states set different minimums.

The form arrives by January 31 each year and reports payments from the previous calendar year. You use the information on your 1099-G to report that income on your federal tax return. The IRS also receives a copy, so the amounts you report must match what appears on the form.

Key Takeaways

• A 1099-G reports government payments including unemployment benefits, state tax refunds, and agricultural subsidies when they reach the reporting threshold.
• You receive a 1099-G by January 31 for payments made during the previous calendar year, and you must report the income shown on your tax return.
• The form shows the payment amount in Box 1a (gross unemployment) or Box 1b (taxable unemployment), and other boxes track different payment types and tax withholding.
• Some 1099-G income is taxable and some is not — unemployment benefits are taxable, but state tax refunds are generally not taxable on your federal return.
• If you received a 1099-G by mistake or the amount is wrong, contact the government agency that issued it to request a correction.

Where the 1099-G comes from and what it covers

State workforce agencies issue 1099-G forms for unemployment insurance benefits. Your state's tax department sends one if you received a state income tax refund. The U.S. Department of Agriculture issues 1099-G forms for farm payments and certain crop insurance proceeds. Some states also use the form to report other government payments, so the source depends on which program paid you.

The threshold for receiving a 1099-G varies. Most states report unemployment benefits of $10 or more, but some states have different minimums. If you received less than the threshold, you may not get a form even though the payment is still taxable income. You are responsible for reporting all government payments on your return, whether or not you receive a 1099-G.

How to read the boxes on your 1099-G

Box 1a shows your gross unemployment benefits — the total amount before any taxes were taken out. Box 1b shows taxable unemployment benefits, which may be lower if you elected to have federal income tax withheld from your payments. The difference between these two boxes is the amount of tax the state withheld on your behalf.

Box 2 reports state income tax refunds. Box 3 shows federal income tax refunds. Box 4 covers agricultural payments. Box 5 reports taxable grants. Other boxes track tax withholding amounts and state tax information. Not every box will have a number — the form only fills in boxes that explore to the payments you received.

Which 1099-G income is taxable on your federal return

Unemployment benefits reported in Box 1b are taxable federal income. You must include this amount on your tax return even if no federal tax was withheld. If you had federal income tax withheld from your unemployment payments, that withholding appears in Box 4, and you can claim it as a payment toward your tax liability.

State income tax refunds in Box 2 are generally not taxable on your federal return, because you already deducted the state taxes when you paid them. However, if you took the standard deduction instead of itemizing, the refund is not taxable. Agricultural payments and other government payments have their own rules — the instructions that come with your 1099-G explain which boxes explore to your situation.

What to do if your 1099-G has an error or you did not receive one

If the amount on your 1099-G is wrong, contact the government agency that issued it directly. For unemployment benefits, call your state workforce agency. For tax refunds, contact your state tax department. For agricultural payments, reach out to the USDA Farm Service Agency. The agency can issue a corrected form (marked as a correction) and send it to you and the IRS.

If you received a 1099-G for a payment you did not get, or if you received a payment but no form arrived, report it to the issuing agency. Do not ignore the form — the IRS has a copy and will notice if your return does not match. If you received unemployment benefits but no 1099-G by the end of February, contact your state workforce agency to request one.

How 1099-G differs from other income forms

A 1099-G reports government payments only. A 1099-NEC or 1099-MISC reports income from self-employment or other non-employee work. A W-2 reports wages from an employer. A 1099-INT reports interest income from banks. Each form covers a different income source, and you may receive several different forms in a single tax year depending on where your income came from.

The 1099-G is also different because some of the income it reports may not be taxable. Unemployment benefits are taxable, but state tax refunds are not. Other forms like the W-2 report only taxable wages. Understanding which boxes on your 1099-G are taxable helps you report the correct amount on your return.

Frequently Asked Questions

Do I have to report 1099-G income if I did not receive the form?

Yes. You must report all government payments on your tax return, whether or not you receive a 1099-G. The IRS knows about the payment because the government agency reported it. If your return does not include the income, the IRS will likely send you a notice asking for an explanation.

Is unemployment income from a 1099-G always taxable?

Yes, unemployment benefits are taxable federal income. However, you can exclude up to $10,200 of unemployment benefits if you received them in 2020 and your modified adjusted gross income was below a certain threshold — this was a temporary rule for that year only. For other years, all unemployment benefits are taxable.

What if I received a 1099-G but did not actually get the payment?

Contact the government agency that issued the form when ready. Explain that you did not receive the payment and ask them to investigate. They can issue a corrected form showing zero if the payment was made in error, or they can help you track down what happened to the money.

Can I claim a loss or deduction for 1099-G income?

No. Government payments like unemployment benefits are reported as income, not as a transaction where you can claim a loss. You report the full amount shown on the form. You cannot reduce it by claiming expenses or losses related to the reason you received the payment.

Do I need to attach my 1099-G to my tax return?

No. You do not attach the form itself. You report the amounts from your 1099-G on the appropriate lines of your tax return — usually Schedule 1 for unemployment benefits. Keep the form with your tax records in case the IRS asks questions about your return.