Form 1099-G — Certain Government Payments

Report unemployment compensation, state/local tax refunds, agricultural payments, and other government payments.

What is Form 1099-G?

Form 1099-G is issued by government agencies to report taxable payments including unemployment compensation, state and local income tax refunds (if you itemized deductions in the prior year), RTAA payments, agricultural payments, and taxable grants.

Who Must File 1099-G?

  • 1State unemployment agencies
  • 2State and local tax authorities (for refunds of $10+)
  • 3Federal agencies making agricultural payments
  • 4Government entities making grants or subsidies

Filing threshold: $10 (tax refunds) / $600 (other payments)

1099-G Filing Deadlines

Paper Filing

February 28

Electronic Filing

March 31

Recipient Copy

January 31

Penalties for Late or Incorrect Filing

$60–$310 per form depending on how late

2024 penalty tiers: $60/form (≤30 days late) → $130/form (31 days–Aug 1) → $310/form (after Aug 1) → $630/form (intentional disregard). Small business caps may apply.

1099-G Box-by-Box Guide

BoxDescription
Box 1Unemployment compensation
Box 2State or local income tax refunds, credits, or offsets
Box 3Box 2 amount is for tax year
Box 4Federal income tax withheld
Box 5RTAA payments
Box 6Taxable grants
Box 7Agriculture payments

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Corrections & Void

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1099-G Frequently Asked Questions

Is my state tax refund always taxable?

Only if you itemized your deductions in the year you paid the tax. If you took the standard deduction, your state tax refund is generally not taxable even if you receive a 1099-G.

Is unemployment compensation taxable?

Yes. Unemployment compensation is fully taxable at the federal level. You can elect to have 10% withheld for federal taxes when you file your unemployment claim.

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