What Form 1099-G Reports and Why You Receive It

Form 1099-G reports certain government payments you received during the year

Form 1099-G is a tax form that reports money paid to you by federal, state, or local government agencies. The IRS requires these agencies to send you a 1099-G if you received certain types of government payments — and you must report that income on your tax return. The most common reason you'll receive one is unemployment benefits, but the form also covers other payments like state tax refunds and agricultural program payments.

You'll receive a 1099-G in the mail by January 31 of the year following the payment year. For example, if you received unemployment in 2024, you'll get the form by January 31, 2025. The form shows the total amount paid to you in Box 1a (unemployment compensation) or other boxes depending on the type of payment.

The key thing to understand: receiving a 1099-G means that payment is taxable income and must be reported on your federal tax return. You cannot ignore it or file without including it, even if you think the amount is wrong or you believe the payment shouldn't have been made.

Key Takeaways

• Form 1099-G reports government payments like unemployment benefits, and you must include this income on your tax return.
• You receive a 1099-G by January 31 for payments made in the previous year, with copies going to you, your state tax agency, and the IRS.
• Box 1a shows unemployment compensation; other boxes report state tax refunds, federal tax refunds, and agricultural payments depending on what you received.
• If the amount on your 1099-G is incorrect, contact the government agency that issued it to request a corrected form, not the IRS.
• Some unemployment benefits may be partially or fully excluded from taxable income under specific rules, but you still report the full amount first and then claim the exclusion.

The boxes on Form 1099-G and what they mean

Form 1099-G has several numbered boxes, and each one reports a different type of government payment. Box 1a is the most common — it shows unemployment compensation paid to you during the year. This is the box most people focus on because unemployment is the most frequent reason for receiving a 1099-G.

Box 1b shows state income tax refunds. If your state refunded you money because you overpaid state income tax in a prior year, that refund appears here. Box 1c shows federal income tax refunds, though this is rare because the federal government typically does not issue 1099-Gs for federal refunds. Box 1d reports other types of government payments, such as agricultural payments or disaster relief payments.

The form also includes your name, address, and Social Security number, plus the name and tax identification number of the government agency that issued the payment. Make sure all this information is correct — if your name or Social Security number is wrong, contact the agency when ready to request a corrected form.

Why you receive a 1099-G and what to do with it

Government agencies issue 1099-Gs because federal law requires them to report certain payments to the IRS. When you receive unemployment benefits, a state tax refund, or other may have access to government payment, the agency tracks that payment and reports it. You receive a copy, your state tax agency receives a copy, and the IRS receives a copy. This allows the IRS to cross-check your tax return against the payments reported to them.

When you file your tax return, you must report the income shown on your 1099-G. If you received unemployment, you'll enter the amount from Box 1a on your federal return. The IRS computer system matches the 1099-G they received against your return — if the amounts don't match, you may receive a notice asking you to explain the difference.

Keep your 1099-G with your tax records for at least three years. You don't mail it with your return, but you need it to complete your return accurately and to have it if the IRS asks questions later.

Correcting errors on your 1099-G

If the amount on your 1099-G is wrong, or if you received a 1099-G for a payment you believe you shouldn't have received, do not contact the IRS first. Instead, contact the government agency that issued the form — the unemployment office, your state tax agency, or whichever agency made the payment. They are responsible for correcting the form.

Call the agency and explain the error. Provide your name, Social Security number, and the details of the payment in question. Ask them to issue a corrected 1099-G (called an amended form) if the error is confirmed. The agency will send you a corrected form and will also send a corrected copy to the IRS. This process usually takes several weeks.

If you file your return before receiving a corrected form, file based on the original 1099-G amount. Once you receive the corrected form, you can file an amended return if the new amount changes your tax liability. Do not ignore the original form or fail to report it — that creates a mismatch with the IRS records and triggers a notice.

Unemployment benefits and the partial income exclusion

In some years, federal law has allowed taxpayers to exclude part or all of their unemployment benefits from taxable income. This exclusion has changed over time and depends on your total income and filing status. If an exclusion applies to you, you still report the full amount from your 1099-G on your return, but then you claim the exclusion on a separate line, which reduces your taxable income.

The rules for this exclusion vary by year and are set by Congress. Check the IRS website or your tax software to see whether an exclusion applies for the year you're filing. Your tax software will typically ask you questions about your unemployment income and will calculate the exclusion automatically if you're may have access to to it.

Even if you believe you should not have received unemployment benefits or that the amount is wrong, you must still report the full 1099-G amount on your return. Then work with the unemployment office to correct the record. Do not straightforward omit the income from your return.

When you receive multiple 1099-Gs

If you received unemployment from more than one state, or if you received both unemployment and a state tax refund, you may receive multiple 1099-Gs. Each form reports a different payment or a payment from a different agency. You must report the income from each form on your tax return.

Add up all the unemployment amounts from all your 1099-Gs and report the total on your return. Do the same for state tax refunds or other payments. Your tax software will have spaces for you to enter information from multiple 1099-Gs, or you can list them separately if you're filing by hand.

Make sure you receive a 1099-G from every agency that paid you. If you received unemployment benefits but don't have a 1099-G by early February, contact the unemployment office to request one. Missing forms can cause problems when you file.

Frequently Asked Questions

Do I have to pay taxes on unemployment benefits?

Unemployment benefits are taxable income, so yes, you must report them on your tax return. However, depending on the year and your total income, you may be able to exclude part or all of the benefits from taxable income under federal rules. Check your tax software or the IRS website to see if an exclusion applies to you for the year you're filing.

What if I received a 1099-G but I don't think I should have?

Contact the government agency that issued the payment — usually the unemployment office or your state tax agency. Explain why you believe the payment was incorrect. They will investigate and issue a corrected form if an error is found. You must still report the original amount on your return until you receive the corrected form.

Can I file my tax return without a 1099-G if I received the payment?

You should not file without reporting the income. The IRS receives a copy of every 1099-G issued, and if you don't report it on your return, the IRS will notice the mismatch and send you a notice. If you haven't received your 1099-G by early February, contact the agency that made the payment to request it.

What if the name or Social Security number on my 1099-G is wrong?

Contact the government agency that issued the form when ready. Provide your correct information and ask them to issue a corrected 1099-G. A wrong Social Security number can cause serious problems when you file, so get this fixed before you complete your return.

Do I need to mail my 1099-G with my tax return?

No, you do not mail the form with your return. Keep it with your records for at least three years. You use the information from the form to complete your return, but the form itself stays in your files in case the IRS asks questions later.