A 1099-G reports government payments you received during the year
A 1099-G is a tax form that reports money paid to you by a government agency. The most common reason you'll receive one is unemployment benefits, but it also covers other payments like state tax refunds, agricultural subsidies, or disaster relief. The form tells the IRS how much you received and in what year, so you know to report it on your tax return.
You'll get a 1099-G if you received more than a certain amount from a government program during the year. For unemployment benefits, that threshold is usually $10 or more, though it varies slightly by state. The form arrives by mail or email, typically by January 31st, and you should receive a copy for your records and another that goes to the IRS.
Key Takeaways
- A 1099-G reports government payments you received, most often unemployment benefits, and you must report the amount on your tax return.
- The form arrives by January 31st and shows the total amount paid to you in the previous calendar year.
- You need the 1099-G to file your taxes accurately, even if you think the amount listed is wrong.
- Some unemployment benefits may be partially or fully exempt from federal income tax depending on the year and your income, but you still report the gross amount first.
Why the IRS sends you a 1099-G
Government agencies report payments they make to you, just as employers report wages on a W-2. The 1099-G is the IRS's way of tracking money that flows from public programs into your hands. When you file your tax return, the IRS cross-checks what you reported against the 1099-G they received from the government agency, so the amounts need to match.
If you received unemployment benefits during a year when you were out of work, that's the most common trigger for a 1099-G. But you might also receive one for a state income tax refund, a federal or state disaster relief payment, or agricultural payments if you farm. The form exists so the government can account for all money it paid out and verify that recipients reported it correctly.
What information appears on the form
The 1099-G has several boxes, but the ones that matter most for your taxes are Box 1a (unemployment benefits) and Box 1b (taxable unemployment benefits). Box 1a shows the total amount you received. Box 1b shows how much of that is taxable—sometimes they're the same number, sometimes they're different.
You'll also see your name, address, and Social Security number, along with the government agency's information. The form is divided into sections for different types of payments, so if you received both unemployment and a tax refund, both amounts will appear on the same form in different boxes. Check that your personal information is correct before you file, because errors there can delay your return.
How unemployment benefits became partially tax-exempt in some years
In 2020 and 2021, Congress passed laws that made the first $10,200 of unemployment benefits per person tax-free for that year only. This was a temporary relief measure during the pandemic. If you received unemployment in those years, your 1099-G may show a higher amount in Box 1a than in Box 1b, because Box 1b reflects the taxable portion after that exemption.
If you filed your 2020 taxes before this law passed and reported all your unemployment as taxable, you may have overpaid. The IRS issued guidance on how to correct this, usually by filing an amended return. For 2021 and later years, no such exemption existed, so all unemployment benefits were taxable again. Always check Box 1b on your form—that's the number you report on your tax return, not Box 1a.
What to do if the amount on your 1099-G seems wrong
If the total doesn't match what you remember receiving, contact the government agency that issued the form, not the IRS. For unemployment, that's your state's unemployment insurance office. They can verify the amount and issue a corrected form if there was an error. Keep records of your own—bank deposits, benefit statements from the agency's website, or letters confirming payments—so you can show what you actually received.
Don't ignore a 1099-G you think is wrong. If you file your return without reporting the amount on the form, and the IRS later matches it against their records, they'll assume you didn't report it and may send you a bill for unpaid taxes plus penalties. It's better to report what the form says and then file a correction if the agency confirms an error.
Using the 1099-G to file your taxes
When you file your federal tax return, you'll report the amount from Box 1b of your 1099-G on the appropriate line. For unemployment benefits, that's usually line 19 on Form 1040. If you received other types of government payments, they go on different lines—your tax software or a tax preparer can direct you to the right spot.
You don't attach the 1099-G to your return, but you do keep it with your records in case the IRS asks questions later. If you received 1099-Gs from multiple agencies or multiple forms for the same type of payment, add them all together and report the total. Your tax software will usually prompt you to enter this information and calculate whether you owe tax or get a refund.
State taxes and the 1099-G
Some states also tax unemployment benefits, while others don't. Your 1099-G is a federal form, so it doesn't automatically tell you what to report to your state. You'll need to check your state's tax rules or ask a tax preparer whether you owe state income tax on the benefits you received. A few states have their own versions of the 1099-G for state tax purposes.
If your state doesn't tax unemployment but the federal government does, you may owe federal tax but not state tax on the same income. This is why it's important to file both a federal and state return if you're required to—they have different rules about what counts as taxable income.
Frequently Asked Questions
Do I have to report a 1099-G if I didn't receive it in the mail?
Yes. The IRS received a copy, so they expect you to report it. If you didn't get your copy, contact the government agency that sent it and ask for a duplicate. You can also check your online account with that agency—many now let you view and read forms electronically.
What if I received unemployment but no 1099-G arrived?
Contact your state's unemployment office. If you received $10 or more, they should have sent one. It may have been mailed to an old address, or there could be a processing delay. Ask them to reissue it or confirm the amount so you can report it accurately on your return.
Can I claim unemployment benefits as a deduction to reduce my taxable income?
No. Unemployment benefits are reported as income, not deducted. You report the full amount (or the taxable amount shown in Box 1b) as income on your return. You cannot reduce it further by claiming it as a deduction.
If I received unemployment in two different states, will I get two 1099-Gs?
Yes, each state sends its own form. You'll report both on your federal return, adding them together on the unemployment line. Make sure both forms are accounted for so the IRS sees the complete picture of what you received.
What happens if the 1099-G shows income I didn't actually receive?
Contact the issuing agency when ready with proof of what you actually received. They can issue a corrected form. File your return with the corrected amount once you have it. If you filed with the wrong amount and later get a corrected form, you may need to file an amended return.