Form 1099 G: Certain Government Payments

Form 1099-G, titled "Certain Government Payments," is an informational tax form used by federal, state, and local government agencies to report various payments they made to taxpayers throughout the year. This form helps ensure transparency and accuracy when filing your income tax return.

What Payments Does Form 1099-G Report?

The IRS mandates that government agencies use Form 1099-G to report specific types of payments. Here are some of the most common:

A. Unemployment compensation: This includes benefits received through state or federal unemployment programs.

B. State or local income tax refunds, credits, or offsets: If you receive a refund for overpaid state taxes, or if the state applies a credit or offset to your tax liability, this amount will be reported on the 1099-G.

C. Reemployment Trade Adjustment Assistance (RTAA) payments: This program provides financial assistance to workers who lose their jobs due to foreign trade.

D. Taxable grants: Certain government grants may be considered taxable income and need to be reported.

E. Agricultural payments: Payments received by farmers from government programs are reported on a 1099-G.

F. Payments on a Commodity Credit Corporation (CCC) loan: This applies to loans received from a government-sponsored program that helps farmers store their crops.

G. Federal income tax withheld: In some cases, the government agency may have withheld federal income tax from your payment. This amount will be reported in a designated box on the form.

Who Receives Form 1099-G?

You will receive a Form 1099-G from a government agency if they made any of the payments listed above to you during the tax year. You should typically receive the form by January 31st of the following year.

What to Do with Form 1099-G?

Review the Information: Carefully examine the form to ensure the information reported matches your records.

File Your Tax Return: Use the information on Form 1099-G to report the income on your federal tax return. The specific form and line where you report the income will depend on the type of payment received.

Keep a Copy for Your Records: It's wise to maintain a copy of Form 1099-G with your tax records for several years.

Additional Points:

Not all government payments are reported on Form 1099-G: For example, Social Security benefits are not reported on this form.

Lost or missing form: If you haven't received your Form 1099-G by the end of January, contact the government agency that made the payment.