1099-G forms are issued by the State Government. If there is no information or you believe the information is not correct you should contact the state that issued it for verification.
If you received a 1099-G Form this year from a government agency, you may need to report some of the information it contains on your tax return. The most common uses of the 1099-G is to report:
- unemployment compensation
- state or local income tax refunds you received that year
Taxable unemployment compensation
Generally, you must include in taxable income any unemployment compensation from a state government.
- Box 1 of the 1099-G Form shows your total unemployment compensation payments for the year.
- Schedule 1 for Form 1040 includes a separate line for unemployment compensation in the income section.
- The amount from box 1 needs to be included in your income.
- It is not necessary to attach the 1099-G to your tax return.
State tax refunds
When you receive a refund, offset, or credit of state or local income tax, that amount appears in box 2 of the 1099-G form. However, you don't necessarily have to report this amount on your federal tax return or pay additional federal taxes.
You only need to report it as federal income if you took a federal deduction for paying those taxes in a prior year and that deduction actually reduced your federal taxes. Box 3 of the form will indicate the relevant tax year.
