A 1099-G reports government payments you received during the tax year

A 1099-G is a form the IRS requires government agencies to send you when you receive certain payments. The form shows money paid to you by federal, state, or local government programs — most commonly unemployment benefits, but also tax refunds, agricultural payments, and other government distributions. You receive a 1099-G because the IRS needs a record that you got this money, and you need to report it on your tax return.

The form arrives by January 31 each year and covers all payments made to you during the previous calendar year. You will receive one 1099-G from each government agency that paid you. If you collected unemployment from your state and also received a federal tax refund, you would get two separate 1099-G forms — one from the state unemployment office and one from the IRS.

Not all government payments generate a 1099-G. Social Security benefits, Supplemental Security Income (SSI), Veterans Administration payments, and Medicaid do not appear on this form. Only specific payment types trigger the reporting requirement, and the agency paying you determines whether to issue one.

Key Takeaways

  • A 1099-G reports unemployment benefits, state tax refunds, federal tax refunds, and certain agricultural or disaster payments you received from government agencies.
  • You must report the income shown on your 1099-G on your federal tax return, even if you did not owe taxes overall.
  • The form arrives by January 31 and covers the full previous calendar year; you receive a separate form from each government agency that paid you.
  • Some unemployment benefits may be partially or fully excluded from taxable income depending on the year and your circumstances, so the amount on the form is not always the amount you report.

What payments appear on Box 1a of your 1099-G

Box 1a shows unemployment compensation — the most common reason you will receive this form. This includes regular state unemployment insurance, federal unemployment benefits (such as Pandemic Unemployment information or Extended Unemployment Compensation), and railroad unemployment insurance. If you collected from multiple states in the same year, each state sends its own 1099-G.

The amount in Box 1a is the total unemployment paid to you before any taxes were withheld. If you asked the state to hold federal income tax from your benefits, that withheld amount appears separately in Box 4. The gross amount in Box 1a is what you report on your tax return, not the net amount you actually received.

Some unemployment benefits received in 2020 and 2021 were excluded from federal taxable income by law. If you received Pandemic Unemployment information (PUA) or other federal pandemic programs during those years, you may not owe tax on part or all of the amount shown. The IRS issued guidance on this, and your state may have issued an amended 1099-G. Check the IRS website or your state unemployment office for the specific rules that applied to your situation.

Other payments that appear on a 1099-G

Box 2 shows state income tax refunds. If you overpaid state income tax and received a refund, the state reports it here. You do not owe federal tax on a state tax refund unless you deducted state taxes on your federal return in the prior year and received a refund because of that deduction.

Box 5 shows federal income tax refunds. The IRS sends you a 1099-G when you receive a refund of federal taxes you overpaid. Like state refunds, federal tax refunds are not taxable income — you are getting back money you already paid.

Boxes 3 and 6 cover agricultural payments and commodity loans made through the U.S. Department of Agriculture. Farmers and agricultural businesses receive these forms when they get price support payments, conservation payments, or other USDA program distributions. Box 7 covers disaster relief payments from federal or state agencies following hurricanes, floods, wildfires, or other declared disasters.

How to report your 1099-G on your tax return

You report the income from your 1099-G on Form 1040, the main federal income tax return. Unemployment benefits go on Line 19 of the 2024 Form 1040. State and federal tax refunds go on Line 10. Agricultural payments and disaster relief have their own lines depending on the type of payment and the form you use.

The amount you report should match the form you received. If the form shows $8,500 in unemployment, you report $8,500 — even if you had taxes withheld and received less. The IRS already knows the gross amount because the state or federal agency reported it. If you report a different amount, the IRS will notice the discrepancy when it matches your return to the 1099-G.

If you received a 1099-G but did not owe taxes overall, you still must file a return and report the income. The form is a third-party report to the IRS, and you must account for it on your return. If you do not report it, the IRS will send you a notice of underreported income.

What to do if your 1099-G has an error

If the amount on your 1099-G is wrong — for example, the state unemployment office overstated the benefits you received — contact the agency that issued the form when ready. Do not wait until tax time. The state unemployment office or IRS office that sent the form can issue a corrected version, called an amended 1099-G.

Request the correction in writing if possible, and keep a copy of your request. Include your name, Social Security number, the tax year in question, and a clear explanation of the error. The agency has until January 31 of the following year to send you a corrected form, but the sooner you report the error, the sooner they can fix it.

If you file your return before receiving a corrected 1099-G, file using the amount on the original form. Once you receive the amended form, you can file an amended return (Form 1040-X) to correct your tax return. Keep the amended 1099-G with your tax records.

When you receive multiple 1099-G forms

If you collected unemployment from two states in the same year, you will receive two 1099-G forms — one from each state. You report the income from both on your tax return by adding them together on Line 19 of Form 1040. The IRS expects to see the combined total of all unemployment you received.

If you received both unemployment benefits and a state tax refund in the same year, you will receive separate 1099-G forms from the unemployment office and the state tax authority. Report each on the appropriate line of your return. Do not combine them.

Attach Copy B of each 1099-G to your return when you file by mail. If you file electronically, you do not attach the forms, but keep them with your records for at least three years in case the IRS asks questions.

Frequently Asked Questions

Do I have to pay taxes on unemployment benefits?

Yes, unemployment benefits are taxable income and must be reported on your federal return. However, some unemployment benefits received in 2020 and 2021 were excluded from federal taxation by law. Check the IRS website to see if you may have access to for the exclusion and whether you need to file an amended return.

What if I did not receive a 1099-G but I got unemployment?

Contact the state unemployment office that paid you. They are required to send the form by January 31. If it is past that date and you have not received it, request a copy in writing. You may also call the office and ask them to email or mail a duplicate. Keep the request for your records.

Can I deduct expenses against my 1099-G income?

No. Unemployment benefits, tax refunds, and disaster relief payments cannot be reduced by deductions. You report the full amount as income. If you received agricultural payments or commodity loans, some business expenses may be deductible, but this depends on the type of payment and your situation — consult a tax professional.

What happens if the 1099-G amount does not match what I actually received?

Contact the issuing agency when ready and request a corrected form. Provide your name, Social Security number, and an explanation of the discrepancy. If you already filed your return, you can file Form 1040-X (amended return) once you receive the corrected 1099-G.

Do I need to attach my 1099-G to my return?

If you file by mail, attach Copy B of the form. If you file electronically, you do not attach it, but keep it with your records for at least three years. The IRS may request it if they have questions about your return.