Form 1099-G

Table Of Contents


Article: 50065

Overview

Form 1099-G, issued by federal, state, or local governments, reports certain types of government payments that may be considered taxable income. According to the IRS, this form is used when any of the following payments have been made:

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

Additionally, Form 1099-G is filed when payments are received on a Commodity Credit Corporation (CCC) loan.

Where to Report 1099-G Information

Reporting Prior-Year State or Local Tax Refunds

You should report a prior-year tax from a state or local government using Form 1099-G – Unemployment, Tax Refunds, and Other Government Payments, Line 2.

To add the form:

  1. Go to Federal Taxes > Review
  2. Click I’d like to see the forms I’ve filled out or search for a form.
  3. Type in Form 1099-G – Unemployment, Tax Refunds, and Other Government Payments.
  4. Select the form from the list to add it.
  5. Complete only the sections relevant to your specific tax situation.
  6. Click Save.
You are required to report your state/local tax refund only if you itemized deductions using in the previous tax year. If you took the standard deduction, you do not need to declare this refund as income.
If you had state refunds from the prior year applied to the current tax year but did not receive Form 1099-G, you should still enter it on your return.

Reporting Unemployment Compensation

If you received unemployment compensation reported on a 1099-G, follow the same process as above:

  1. Go to Federal Taxes > Review.
  2. Select the I’d like to see the forms I’ve filled out or search for a form link.
  3. Open Form 1099-G – Unemployment, Tax Refunds, and Other Government Payments.
  4. Complete the section related to unemployment income.
  5. Click Save.

Withholding Error (No Payments)

If you have a 1099-G that has state and/or local withholding amounts in Box 11, but have not entered any of the following this error message may generate:

  • State/Local Refunds/Credits in Box 2
  • State Unemployment Amount in Box 10b
  • Local Payment in Box 11

Without payment data in one of these boxes, the software is reading your entries as tax withholding from 0 income, which is not possible – thus, the error message.

To correct this error, you will need to revisit your 1099-G in the federal forms section.

  1. Go to Federal Taxes > Review.
  2. Select the I’d like to see the forms I’ve filled out or search for a form link.
  3. Open Form 1099-G – Unemployment, Tax Refunds, and Other Government Payments.
  4. Male sure you have entered State Income Tax Withheld or Local Withholding in Box 11.
  5. If you have entries in one of the fields listed above, you will also need to have an entry for the following as they apply to your situation:
    • State/Local Refunds/Credits in Box 2
    • State Unemployment Amount in 10b
    • Local Payment in Box 11
  6. Click Save.

While this error message will show up in the State Taxes tab as a state error, the correction needs to be made on the federal Form 1099-G.

Additional Resources

For further guidance and authoritative instructions, refer to:

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