Form 1099-G: Certain Government Payments (2022) – Simple Guide

What the form is for

Form 1099-G is issued by federal, state, or local agencies to report certain payments they made to you—so both you and the IRS know about income that may be taxable. The most common items:

• Unemployment compensation (Box 1)
• State/local income tax refunds, credits, or offsets (Box 2)
• RTAA payments (trade-related assistance)
• Taxable grants (Box 6)
• Agricultural payments (Box 7), e.g., certain USDA/CCC programs

When it’s issued: Agencies must furnish your copy by January 31 following the year of payment. For 2022, that’s by Jan 31, 2023.

Reporting thresholds (2022):

• Unemployment & state/local refunds: $10+
• RTAA, taxable grants, agricultural payments: $600+

When you’ll use it (late/missing/amended)

• Normal filing: Use the amounts on your 1099-G when you prepare your 2022 federal return.
• Missing by early February? Check your state agency portal or call them. You’re still required to report the income—use your own records if necessary.
• Incorrect form? Ask the agency for a CORRECTED 1099-G. If you already filed and the correction changes your tax, file Form 1040-X.

Key rules for 2022

• Unemployment is fully taxable federally. The special $10,200 exclusion from 2020 does not apply in 2022. Report all Box 1 amounts.
• State tax refunds (Box 2) are taxable only if you itemized deductions on your prior-year federal return and got a benefit from deducting state income tax (the tax benefit rule). If you took the standard deduction for 2021, Box 2 is generally not taxable.
• Federal withholding (Box 4) counts toward your total payments—don’t forget to claim it.
• Multiple states/forms: Add all applicable amounts together when you report.

Where each box goes on your 2022 return

• Unemployment compensation (Box 1): Schedule 1 (Form 1040), line 7
• Taxable state/local refund (Box 2): Schedule 1, line 1 (only if prior year was itemized and benefited)
• Federal tax withheld (Box 4): Form 1040, line 25b (“from Forms 1099”)
• RTAA / Taxable grants (Boxes 5/6): Usually Schedule 1, line 8z (Other income) unless clearly business/farm-related
• Agricultural payments (Box 7): Schedule F (or appropriate business/entity form)

Box 3 (Refund year): Shows the tax year the refund in Box 2 relates to. Use that year to decide whether you itemized and got a tax benefit.

Quick step-by-step

1. Get the form(s). Check mail/portal in late Jan–early Feb.
2. Verify amounts. Compare Box 1 and Box 2 to your records; note any Box 4 withholding.
3. Decide taxability.
   • Box 1: Always taxable federally.
   • Box 2: Taxable only if you itemized and benefited in the refund’s tax year.
4. Report on the right lines (see mapping above).
5. Keep the form with your records (at least 3 years; 7 is safer).

Common mistakes (and fixes)

• Ignoring the form: The IRS matches it—report the income even if you never received the paper form.
• Reporting a non-taxable state refund: If you took the standard deduction for 2021, Box 2 is generally not taxable.
• Overlooking Box 4 withholding: Add it to Form 1040 line 25b.
• Missing additional 1099-Gs: If you moved or had multiple programs/states, you may have several forms—include them all.
• Identity-theft unemployment: If you get a 1099-G for benefits you didn’t receive, report it to your state workforce agency and request a zeroed corrected form. Do not report fraudulent income.

After you file

• IRS matching: The IRS compares your return to all 1099-Gs filed. If something doesn’t match, you may get a CP2000 proposing changes.
• Refunds & payments: Any Box 4 withholding is credited like wage withholding and can boost your refund/reduce balance due.
• Planning ahead: If you’ll receive unemployment again, consider voluntary 10% withholding (Form W-4V) to avoid an April surprise.

FAQs

Is unemployment taxable in 2022? Yes, fully taxable federally (no 2020-style exclusion).
I took the standard deduction last year—do I report Box 2? Generally no.
Wrong amount on 1099-G? Request a corrected form; amend with 1040-X if it changes your tax.
Didn’t get the form? Pull it from the agency portal or use your payment records—you still must report the income.
Multiple states paid me unemployment—how do I file? Add all Box 1 amounts and report the total; keep each form for records.

References (IRS): About Form 1099-G; 2022 Instructions for Form 1099-G; guidance on missing/incorrect forms and unemployment identity theft.

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