How to Fill Out a 1099-G Form: Who Needs to File IRS Form

If you ever received unexpected money from the government, like a tax refund or unemployment benefits? You might have gotten an IRS 1099-G form in the mail. Alternatively, if you’re on the other side as a government entity or administrator, you might be responsible for filling out a 1099-G form to report those payments accurately.

In this perfect guide written by a tax advisor, we’ll walk through 1099-G instructions on how to fill out a 1099-G form, expert filing tips and examples of a filled form. By the end, you’ll feel confident tackling this form, whether you’re issuing it or reporting it on your taxes.

What Is a 1099-G Form and What Is It Used For?

IRS Form 1099 G, Certain Government Payments, is used by federal, state or local government agencies to report certain types of payments to you and to the IRS.

Specifically, you may receive one if you had:

• Unemployment compensation.
• A state or local income tax refund, credit or offset.
• Taxable grants from a government program.
• Agricultural payments (and other less common categories).

Why this Matters: If you receive a 1099-G, you need to know what it means for your taxes. It doesn’t mean you owe more automatically, but it does mean the IRS has been notified that you received the payment, and you’ll need to evaluate whether it’s taxable.

At Acct. Right, PLLC, our experts guide clients in identifying which income is taxable and how to report it properly, protecting you from IRS errors and potential audits.

Who Needs to File or Report Form 1099-G

Understanding what to do with 1099-G matters because:

• Received unemployment benefits in the prior year
• Claimed a state tax refund after itemizing deductions
• Were issued a taxable government grant
• Received the form unexpectedly (sometimes due to errors or identity theft)
• Payers must file 1099-G for all qualifying payments

Latest Update: States with qualified paid family leave programs must now report those benefits on Form 1099-G, as per recent IRS guidance. This ensures workers get the info they need for their returns. If you’re unsure if this applies to your situation, checking with tax professionals can help clarify.

How to Get Form 1099-G

Here’s how to get your Form 1099-G:

• For recipients, the government agencies issue it by January 31 each year
• If you haven’t received it by early February, contact the agency that made the payment.
• Many states offer digital access, making it quicker and also allowing you to download a duplicate

Even if you didn’t receive a mailed copy, you can still obtain the information (and your tax preparer can help you access it via transcripts or the agency’s portal)

Instructions on How to Fill Out Form 1099-G: Payer’s Side

If you are the payer (government unit, state agency etc.), or you’re overseeing someone receiving payouts, here’s how to fill out Form 1099-G (per the official instructions)

1. Enter Payer’s Information

Start with your organization’s name, address, phone number, and Employer Identification Number (EIN). This is the government entity making the payment.

2. Add Recipient’s Details

Include the recipient’s name, address, and Taxpayer Identification Number (TIN), like their Social Security Number. Make sure it’s accurate to avoid issues.

3. Gather the Form and Instructions

Use the latest IRS Form 1099-G and official instructions for 2025.

4. Enter Payer and Recipient Details

• Payer: Government agency name, address, and TIN
• Recipient: Your name, address, and SSN or taxpayer ID

Matching these with your tax return avoids delays.

5. Report Payments

• Box 1: Unemployment compensation
• Box 2: State or local tax refunds
• Box 3: Tax year of the refund
• Box 4: Federal tax withheld
• Box 6: Taxable grants
• Box 7: Agriculture payments

Include State Information (If Required): Complete Boxes 10-11 for state taxes withheld or state ID numbers.

File and Keep Copies: The agency sends Copy A to the IRS and Copy B to you. Keep a copy for your records for future purposes.

Deadline to File Form 1099-G

• Paper filing: February 28
• Electronic filing: March 31

Note: The 1099-G Form reports government payments, including unemployment or state tax refunds, which can affect your Social Security benefits. This blog on Social Security Tips helps you understand how such payments interact with IRS rules and taxes.

Example of a Filled 1099-G Form

This visual example helps recipients and payers understand how to complete Form 1099-G accurately.

Where Do I Put the 1099-G on the Tax Return?

For Recipients:

• Unemployment income (Box 1): Report on Schedule 1 (Form 1040), line 7
• State tax refund (Box 2): Taxable if you itemized deductions last year; otherwise, usually not
• Taxable grants or agricultural payments: Report as business or other income

A trusted accounting team can prevent misreporting and ensure correct IRS filing.

For Payers:

• You must file the 1099-G with the IRS (and sometimes state departments) and furnish a copy to the recipient
• Deadlines: For paper filing with the IRS, February 28 for the year following the calendar year of payment; for electronic filing, March 31.

Acct. Right, PLLC provides business tax preparation, including handling IRS forms 1065, which might intersect if you’re a business owner.

Common 1099-G Errors to Watch For

Even small mistakes on this form can trigger IRS letters or tax return mismatches. Avoid these common errors:

• Incorrect taxpayer identification numbers (TINs)
• Miscalculated refund or unemployment amounts
• Unreported or duplicate forms
• Identity theft or fraudulent claims

If you receive a 1099-G for benefits you never requested, report it immediately to your state agency. They’ll issue a corrected form showing “$0” if it’s a confirmed fraud case. Acct. Right, PLLC also helps reconcile discrepancies efficiently.

Checklist: What To Do With Your 1099-G

1. Ensure you received the correct form or download it from your state agency if available.
2. Check all amounts, TINs, names & addresses for accuracy.
3. Determine whether the payment is taxable based on your prior year itemization or unemployment situation.
4. Enter the amounts in the correct place on your tax return (Schedule 1, etc.).
5. Keep a copy of the 1099-G with your tax records—don’t forget you may need it if asked.
6. If something looks wrong (you didn’t receive it, or you didn’t claim the payment), contact the issuing agency—and keep proof you reached out.
7. Consider consulting your trusted accounting and tax advisor for clarification.

Conclusion:

Filing your 1099-G form correctly doesn’t have to be confusing. Knowing what a 1099-G form is and how to fill out a 1099-G form helps you report unemployment benefits, state refunds, or taxable grants without mistakes. Working with experts like Acct. Right, PLLC makes the process even easier. They ensure your forms are accurate, deadlines are met, and nothing is overlooked. With the right guidance, you can handle your taxes with confidence, avoid IRS problems, and make smart decisions for your finances. Tax season can be simple when you have the right support.

Disclaimer

The information provided here is intended for educational purposes only and is not a substitute for professional tax or legal advice. We provide tax and accounting support for your individual situation. Some images may be illustrative or AI-created.

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