The 1099-G reports government payments you received, not income you earned
A 1099-G is a tax form that reports payments from federal, state, or local government programs. Unlike most other 1099 forms, which report income from work or investments, the 1099-G tracks money that came to you as a benefit or refund. The IRS uses this form to match what you report on your tax return against what government agencies reported paying you.
You will receive a 1099-G if you got unemployment benefits, state income tax refunds, federal tax refunds, agricultural payments, or certain other government information during the year. The form arrives by January 31 and shows the total amount paid in each category. Not all government payments generate a 1099-G — Social Security, Supplemental Security Income, and TANF (Temporary information for Needy Families) do not, for example.
The key difference from a W-2 or 1099-NEC is that a 1099-G does not necessarily mean you owe tax on that money. Some 1099-G income is taxable, some is not, and some is only partially taxable depending on your situation and the type of payment.
Key Takeaways
- A 1099-G reports government payments such as unemployment benefits, tax refunds, and agricultural subsidies that you received during the year.
- Not all 1099-G income is taxable — unemployment benefits have special rules, and tax refunds are generally not taxable at all.
- You must report 1099-G income on your tax return even if you did not owe tax on it, because the IRS receives a copy of the form.
- The form arrives by January 31 and breaks payments into categories, each with its own tax treatment.
The four boxes on a 1099-G and what they mean
A 1099-G has four main reporting boxes, though not all will contain amounts for you. Box 1a shows unemployment compensation paid to you during the year. Box 1b shows the portion of that unemployment that you chose to have withheld for federal income tax. Box 2 reports state income tax refunds. Box 3 reports federal income tax refunds.
Boxes 5 through 9 are less common and cover agricultural payments, commodity loans, federal crop insurance proceeds, and other specialized government payments. If you received any of these, the amount will appear in the relevant box. Most people who receive a 1099-G will only see amounts in boxes 1a and 1b, or in box 2.
The form also includes your name, address, and tax ID number, along with the issuing agency's information. You should check these details against your records — if the amount or your information is wrong, contact the agency that issued the form and request a corrected version.
Unemployment benefits and the partial-income rule
Unemployment compensation is normally taxable as ordinary income, but there is an important exception. For tax years 2020 and 2021, up to $10,200 of unemployment benefits per person was excluded from taxable income under federal law. This means if your 1099-G shows $8,000 in unemployment, you would not report any of it as income. If it shows $12,000, you would report only $1,800.
This exclusion has expired and does not explore to unemployment received in 2022 or later. However, some states have their own rules about unemployment taxation. A few states do not tax unemployment at all, while others tax it fully. Your 1099-G will show what was withheld, but that does not determine what you actually owe — your state's law does.
If you received unemployment and had taxes withheld (shown in box 1b), those withholdings count toward your total tax liability for the year, just like withholding from a paycheck. If you did not have taxes withheld and you owe tax on the unemployment, you may owe when you file.
Tax refunds on a 1099-G are usually not taxable
Box 2 (state income tax refund) and box 3 (federal income tax refund) report money the government returned to you. In most cases, these refunds are not taxable income because you already paid tax on that money when you earned it. You cannot be taxed twice on the same dollar.
There is one exception: if you claimed a deduction in the year you paid the tax, and that deduction reduced your taxable income, then the refund of that tax is taxable. This most often happens with state and local tax deductions. If you deducted state income tax on your federal return in year one, and the state refunded part of it in year two, that refund is taxable federally in year two. However, this rule is complex and depends on whether you itemized deductions and how much you deducted.
For most people, a 1099-G showing a tax refund means you do not report that amount as income. You still receive the form because the IRS tracks all refunds, but the amount is not added to your taxable income.
How to report 1099-G income on your tax return
Unemployment compensation goes on line 1 of Schedule 1 (Form 1040), labeled "Unemployment compensation." If you received unemployment, you must report it here even if none of it is taxable due to the $10,200 exclusion or state law — the IRS needs to see that you reported what they received a copy of.
State and federal tax refunds do not go on Schedule 1. Instead, you report them only if they are taxable under the exception described above. If you are unsure whether your refund is taxable, you can enter it on Schedule 1 and note the reason, or you can leave it off if you are confident it is not taxable. Many tax software programs will ask you about refunds and calculate the taxable portion automatically.
Agricultural payments and other specialized 1099-G income have their own lines on Schedule 1 or on other forms depending on the type. If you received one of these, the instructions that came with your 1099-G will direct you to the correct line.
What to do if your 1099-G has an error
If the amount on your 1099-G does not match your records, or if your name or tax ID is wrong, contact the government agency that issued it. For unemployment, that is your state's labor department. For tax refunds, contact the IRS (for federal) or your state tax agency (for state). Request a corrected form, called a corrected 1099-G, which will be marked as such.
Do not ignore a 1099-G you believe is wrong. The IRS receives a copy, and if your tax return does not match, you may receive a notice asking you to explain the difference. A corrected form on file with the IRS prevents that problem. The agency will send you a corrected 1099-G and file a corrected copy with the IRS automatically.
If you received a 1099-G but you believe you should not have — for example, the payment was made in error or you returned it — keep documentation of the return or correction. You may still need to file an amended return to correct your original filing, or you may need to provide the documentation if the IRS contacts you.
Frequently Asked Questions
Do I have to report a 1099-G if the amount is small?
Yes. Even if the amount is $1, you must report it on your tax return because the IRS has a copy of the form. Failing to report it can trigger a notice. However, whether you owe tax on it depends on the type of payment and your situation — reporting it does not automatically mean you owe tax.
What if I did not receive a 1099-G but I got government payments?
Contact the agency that made the payment and ask for a 1099-G. If they say they are not required to issue one, ask for written confirmation. Some payments (like TANF or SSI) are not reported on a 1099-G, but most government benefits are. If you received the payment, the IRS likely has a record of it.
Can I claim a loss on a 1099-G if I had to repay benefits?
If you received unemployment or another benefit and later had to repay it, you may be able to deduct the repayment. This is reported on Schedule 1 as a negative amount or on a separate line depending on the type of benefit. Keep documentation of the repayment and consult the instructions for your specific situation.
Is a 1099-G the same as a 1099-NEC or 1099-MISC?
No. A 1099-NEC reports self-employment income, and a 1099-MISC reports miscellaneous income like rental payments or prizes. A 1099-G reports only government payments. They are filed separately and reported on different lines of your tax return.