Understanding Tax Form 1099 G

The 1099 G form is used mainly to report unemployment payments. It is also used to report funds received from state or federal tax refunds. Unemployment income is taxable income.


Tax Refunds

The 1099 G form is also used for state and local tax offsetting purposes. The funds do not need to be reported if you took a deduction for paying additional taxes on a previous return. View box 3 on your 1099 G to see what tax year the funds are listed for.

1099 G Boxes

It is important that you pay attention to the numbers listed in each of the boxes on your 1099 G. These numbers will be needed on your tax return.

A simple breakdown of the boxes and what numbers they include is:

  • 4, 10a, 10b and 11  –  Federal, state and local income taxes withheld from government payments received
  • 5  –  trade adjustments
  • 6 –  taxable grants from government agencies
  • 7 – payments from the Department of Agriculture
  • 9 – market gains on loans; restricted to farmers only

Be sure to copy these numbers exactly as they appear on your 1099 G into your tax preparation forms and worksheets. Transposing numbers can trigger an audit.

The 1099 G form may seem confusing due to the language used on the form. It is important to match terminology to your Schedule A form in order to input the correct information. If you are not tax savvy, enlisting the assistance of an experienced tax preparer will ensure that your return is completed and filed correctly.

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