Form 1099-G is used by federal, state, and local government agencies to report certain government payments of $10 or more made to individuals during the tax year — including unemployment compensation, state and local income tax refunds, taxable grants, agricultural payments, and family leave benefits. If your agency made any of these payments, you are required to file Form 1099-G with the IRS and provide a copy to each recipient.
Our platform makes 1099-G eFiling fast, accurate, and IRS-compliant — whether you’re a state unemployment agency, a local government issuing tax refunds, or a federal entity making taxable grant payments.
Form 1099-G — titled Certain Government Payments — is the IRS information return filed by government units to report taxable payments made to individuals. Recipients use Form 1099-G to accurately report government-sourced income on their federal and state tax returns.
You must file Form 1099-G if you are a unit of a federal, state, or local government — or a designated officer or employee of such a unit — and you made any of the following payments during the calendar year:
Note: If unemployment compensation comes from more than one contributory program deemed to be in the nature of unemployment compensation, file a separate Form 1099-G for each program. The $10 reporting threshold applies per recipient, per payment type.
Each box on Form 1099-G captures a specific payment type. Use the correct box for each payment — common errors occur when taxable grants (Box 6) are incorrectly reported in the state tax refund box (Box 2).
| Box | Reported Amount |
| Box 1 | Unemployment compensation — total amount paid before any tax withholding |
| Box 2 | State or local income tax refunds, credits, or offsets of $10 or more |
| Box 3 | Year to which the Box 2 refund, credit, or offset applies |
| Box 4 | Federal income tax withheld — if the recipient elected voluntary withholding |
| Box 5 | RTAA (Reemployment Trade Adjustment Assistance) payments |
| Box 6 | Taxable grants |
| Box 7 | Agricultural payments |
| Box 8 | Checkbox — if checked, the Box 2 amount is a trade or business income refund |
| Box 9 | Market gain on CCC loans repaid with certificates |
| Box 10 | Family leave benefits paid under a state paid family and medical leave program (new for 2026) |
Milestone | Deadline |
Recipient copies furnished | January 31 |
IRS paper filing | February 28 |
IRS eFile submission | March 31 |
Mandatory eFile threshold: Government agencies filing 10 or more aggregate information returns are required to eFile. Late or incorrect filings may result in penalties of up to $340 per form, depending on how late the filing is.
What is Form 1099-G used for?
Form 1099-G is used by federal, state, and local government agencies to report certain taxable payments made to individuals — including unemployment compensation, state and local income tax refunds, taxable grants, agricultural payments, RTAA payments, and family leave benefits.
Who must file Form 1099-G?
Any unit of a federal, state, or local government — or a designated officer of such a unit — that made qualifying government payments of $10 or more to individuals during the calendar year must file Form 1099-G with the IRS and furnish a copy to each recipient.
What is the minimum amount that triggers a 1099-G filing?
Government agencies must file Form 1099-G when qualifying payments — such as unemployment compensation or state/local income tax refunds — total $10 or more per recipient during the calendar year.
When is Form 1099-G due?
Recipient copies must be furnished by January 31. IRS paper filings are due February 28, and IRS electronic filings are due March 31.
Is unemployment compensation reported on Form 1099-G taxable?
Yes. Unemployment compensation reported in Box 1 of Form 1099-G is fully taxable as ordinary income at the federal level and must be reported on Schedule 1 of Form 1040. Recipients may elect voluntary federal income tax withholding of 10%, which is reported in Box 4.
Are state tax refunds reported on Form 1099-G taxable?
State and local income tax refunds reported in Box 2 may be taxable at the federal level, but only if the recipient itemized deductions in the year the tax was paid. If the recipient took the standard deduction that year, the refund is generally not federally taxable.
What is the difference between Box 2 and Box 6 on Form 1099-G?
Box 2 is for state or local income tax refunds, credits, or offsets only. Box 6 is for taxable grants. These are separate payment types and must not be combined or interchanged — a common filing error.
What should I do if I received a 1099-G for unemployment benefits I never collected?
This is a sign of potential identity theft or unemployment fraud. Recipients should report the fraudulent claim to the issuing state’s unemployment agency immediately, request a corrected Form 1099-G, and file their federal return reporting only the income they actually received. The IRS has specific guidance for taxpayers in this situation.
Is Form 1099-G new for family leave benefits?
Box 10 was added to Form 1099-G to report family leave benefits paid under state paid family and medical leave programs. This is a recent addition — beginning with the 2026 tax year instructions — and is separate from state/local tax refunds and unemployment compensation.
Can I eFile multiple 1099-G forms at once?
Yes. Our platform supports bulk uploads so government agencies can file for large numbers of recipients in a single submission. Mandatory eFiling applies when filing 10 or more aggregate information returns.
Stay compliant with IRS government payment reporting requirements. Start your free 7-day trial and eFile 1099-G forms directly with the IRS today.
