It's impossible to tell whether those figures are correct without being able to see your tax return.
Form 1099-G is used for a lot of different kinds of payments. Is the 1099-G for unemployment? If so, it sounds like you didn't have enough tax withheld from your unemployment, or maybe you didn't have any tax withheld at all. If that's the case, the reduction of your refunds could very well be correct.
What state are you in? Unemployment benefits are taxable in most states, but there are a few states that do not tax unemployment.
