What Is Form 1099-G, Certain Government Payments?
The term Form 1099-G, Certain Government Payments refers to a form filed by federal, state, and local government agencies for payments made to taxpayers. The form is sent to the Internal Revenue Service (IRS) and to taxpayers to report payments like unemployment compensation as well as payments made on a Commodity Credit Corporation (CCC) loan. Forms are sent to taxpayers by the end of January of the year following the payments.
- Form 1099-G is filed by local, state, and federal governments for payments made to taxpayers.
- It may also be used to report payments made on Commodity Credit Corporation loans.
- The form is filed for unemployment compensation payments, state or local income tax refunds, or other payments from the government.
- Taxpayers who receive the form may need to report some of the information on their annual income tax returns.
- Form 1099-G is sent no later than January 31 of the year following payments.
Who Can File Form 1099-G, Certain Government Payments?
Form 1099-G, Certain Government Payments is a form filed by various levels of government—those that are at the federal, state, and local levels. These must be filed whenever they made payments for:
- Income tax refunds, credits, or offsets at the state and local levels
- Reemployment trade adjustment assistance (RTAA)
- Taxable grants
- Agricultural payments
Federal, state, or local governments should file Form 1099-G to report if they received payments on a Commodity Credit Corporation (CCC) loan.
Five copies of the 1099-G must be completed. The IRS receives Copy A, the state tax department gets Copy 1, and the taxpayer gets Copy B. Copy 2 goes to the taxpayer to file with their state income tax return if required. while Copy C goes to the payer or filing agency.
You don’t need to submit a copy of Form 1099-G, Certain Government Payments with your annual tax return.
How to File Form 1099-G, Certain Government Payments
Form 1099-G is sent to you if a federal, state, or local government made payments to you. The most common uses of the 1099-G are to report unemployment compensation and state and local income tax refunds. If you receive a 1099-G, you may need to report some of the information when you file your income tax return. This information is included as part of your income on Form 1040.
You should receive your Form 1099-G by January 31 of the year following the tax year. You may also access the form online if you received unemployment compensation by visiting your state’s unemployment benefits website.
The left side of the form includes details about the payer (the government that made the payment) and the recipient (you, the taxpayer), including names, addresses, tax identification numbers (TINs), and any associated account number. The right side of the form has 11 boxes.
- Box 1: Unemployment compensation. This box is reserved for total unemployment compensation (including Railroad Retirement Board payments) received this year. If you receive more than one 1099-G, combine the Box 1 amounts and report the total as income on the unemployment compensation line of your tax return.
- Box 2: State or local income tax refunds, credits, or offsets. Box 2 shows refunds, credits, or offsets of state or local income tax you received. This amount might be taxable if you deducted the state or local income tax paid on Schedule A.
- Box 3: Box 2 amount is for tax year. Box 3 shows the tax year for which the refunds, credits, or offsets in Box 2 were made. The box may be left blank if the refund, credit, or offset is for the current tax year.
- Box 4: Federal income tax withheld. Box 4 shows backup withholding or withholding you requested on unemployment compensation, Commodity Credit Corporation (CCC) loans, or certain crop disaster payments.
- Box 5: RTAA payments. Box 5 shows the reemployment trade adjustment assistance (RTAA) payments you received. This amount should be included on the "other income" line of Schedule 1.
- Box 6: Taxable grants. Box 6 shows taxable grants you received from government agencies.
- Box 7: Agriculture payments. Box 7 shows taxable payments you received from the U.S. Department of Agriculture (USDA). See IRS Pub. 225 and the Schedule F instructions to learn where to report this income.
- Box 8: Check if Box 2 is trade or business income. Box 8 shows if the amount in Box 2 is related to an income tax that applies exclusively to income from a trade or business. If taxable, report the amount from Box 2 on Schedule C or F.
- Box 9: Market gain. Box 9 shows any market gain associated with the repayment of a Commodity Credit Corporation (CCC) loan (available only to farmers).
- Box 10a: State. Box 10a shows the abbreviated name of the state.
- Box 10b: State identification no. Box 10b shows the state’s identification number.
- Box 11: State income tax withheld. Box 11 shows the amount of state income tax withheld.
Download Form 1099-G, Certain Government Payments
All copies of Form 1099-G are available on the IRS website.
What Is Form 1099-G Used For?
Form 1099-G is used to report certain payments made by government entities to taxpayers, including unemployment compensation, state and local income tax refunds, reemployment trade adjustment assistance, taxable grants, and agricultural payments. The form is also used to report payments received for Commodity Credit Corporation loans.
How Do I See My Form 1099-G Online?
You can view a copy of your Form 1099-G online by logging on to the issuer's website and inputting your account information. Some agencies, like the employment department of California, keep 1099-G records for up to five years.
How Do I Get a Form 1099-G?
Local, state, and federal governments, along with other government agencies, send taxpayers Form 1099-G the year after the payments are made (or received in the case of a Commodity Credit Corporation loan) by January 31. You can also log on to the agency's website to get a copy of your form online.