What is Form 1099-G?
860 views | Last modified 1/3/2023 8:25:20 AM EST | Added by TaxBandits Team

Applicable To
94X 1099 W-2 ACA W-4

IRS Form 1099-G is filed by government units, including federal, state, or local governing bodies, if they have made the following payments.

  • Unemployment compensation
  • State or local income tax refunds, credits, or offsets.
  • Reemployment Trade Adjustment Assistance (RTAA) payments.
  • Taxable grants.
  • Agricultural payments.

Government agencies should also report the payments received on the Commodity Credit Corporation (CCC) loans in this Form.

If an individual received a Form 1099-G copy from any Government agency, they have to use certain information on the copy while filing their income tax return.

Completing IRS Form 1099-G is easy and straightforward. There are eleven boxes in the Form to report the payments made and other information. Below is a detailed explanation of each box.

Box 1: Unemployment Compensation

In Box 1, enter the overall unemployment compensation that you paid for the year. As a recipient, if you get more than one 1099-G copy, sum up all amounts in Box 1 and report it as unemployment compensation on your income tax return.

Box 2: State or local income tax refunds, credits, or offsets.

In Box 2, report the refunds, credits, or offsets of state or local income taxes of $10 or more that you paid for the tax year.
Box 3: Box 2 amount is for tax year.

Leave Box 3 empty if you report refund, credit, or offset for the tax year 2019. If you are reporting for any other tax year, enter that year.
If you want to report refunds, credits, or offsets for more than one year, you have to use separate Form 1099-G for each year. Make sure that you use the “YYYY” format in this box.
Note: Always use the “YYYY” format, e.g., 2019, and don’t use “19”.

Box 4: Federal Income Tax Withheld

Enter the backup withholding or voluntary withholding in Box 4. The voluntary federal withholding on unemployment compensation, Commodity Credit Corporation (CCC) loans, or other crop disaster payments should be reported on this box.

Box 5: RTAA Payments

In Box 5, report the Reemployment Trade Adjustment Assistance payments of $600 or above you paid to the eligible individuals.

Box 6: Taxable Grants

Report amounts of taxable grants of $600 or more in this box

Box 7: Agricultural Payments

Report the subsidy payments made under the U.S Department of Agriculture (USDA) for the year.

Box 8: Trade or Business Income (Checkbox)

Box 8 is to know if the amount entered in Box 2 is attributable to income tax that applies to income from a trade or business. Also, if it is not related to the tax of general application, check the box.

Box 9: Market Gain

In Box 9, enter the market gain amount related to the Commodity Credit Corporation loan repayment.

Box 10a: State

Enter the abbreviated name of your state.

Box 10b: State Identification Number

Enter your state identification number.

Box 11: State income tax withheld

Report the state income tax withheld amount in this box.

Generally, Form 1099-G has five copies. 

  • Copy A for IRS
  • Copy 1 for State Tax Department
  • Copy B and Copy 2 for the recipient
  • Copy C for the filer

As a filer, send a Form copy to the recipient before January 31 of the year following the tax year.

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