Instructions for Form 1099-G Checklist: 2013 Tax Year
Form 1099-G reports government payments made during the 2013 tax year, including
unemployment compensation, income tax refunds, taxable grants, and agricultural payments issued by federal, state, or local agencies. These amounts may affect income taxes and should be reviewed before completing a federal income tax return using Form 1040.
This guide follows the 2013 Form 1099-G layout and applicable Internal Revenue Service instructions without adding later-year program rules that do not apply to 2013. It is intended as a practical checklist focused on correct box usage, accuracy, and consistent reporting on the 2013 federal tax return.
Step-by-Step Form 1099-G Compliance Checklist
Step 1: Gather and review required documents
Gather all Forms 1099-G received for the 2013 tax year, along with year-end statements from the issuing Tax Department or agency reporting Government Payments. Review the 2012 federal tax return, because the treatment of state income tax refunds may depend on whether
Schedule A was used.
Confirm each box number on the Form 1099-G matches the official 2013 layout, because the box meanings must be applied exactly as shown on the tax form. Using the correct boxes helps prevent errors when reporting unemployment benefits and income tax refunds on Form 1040.
Step 2: Verify Unemployment Compensation reported in Box 1
Confirm Box 1 shows total unemployment compensation paid during 2013, including unemployment insurance benefits issued by a state labor agency. Compare Box 1 totals to agency payment histories, benefit confirmations, or deposit records to confirm the amount is accurate.
Unemployment benefits reported in Box 1 are generally taxable income for 2013, even when voluntary federal withholding was requested. If Box 1 appears incorrect, contact the issuing agency and request a corrected Form 1099-G.
Step 3: Do not apply an unemployment deduction for 2013
For the 2013 tax year, no special unemployment deduction or percentage exclusion applies to unemployment compensation shown on Form 1099-G. The amount in Box 1 is reported as income on the appropriate unemployment compensation line for the 2013 Form 1040.
Tax software should enter the payment through the Form 1099-G unemployment screen rather than treating it as an adjustment or deduction. This approach supports accurate income tax reporting on the federal tax return.
Step 4: Reconcile state or local income tax refunds in Box 2 and tax year in
Box 3
Review Box 2 for state and local tax refunds, credits, or offsets issued during 2013, including amounts applied to debts or estimated taxes. Use Box 3 to identify the tax year to which the Box
2 refund relates, which is commonly the prior-year return.
Even if an offset prevented direct receipt of a refund, the payment may still affect income taxes depending on prior deductions. Accurate reconciliation supports correct reporting on the federal income tax return.
Step 5: Determine whether the refund in Box 2 is taxable
A state income tax refund is potentially taxable only if a prior-year federal return received a tax benefit from deducting state income taxes. Review the 2012 federal tax return to confirm whether Schedule A of that year’s federal Form 1040 was filed.
If the standard deduction was used for 2012, the refund is generally not taxable for 2013. If
Schedule A was used and state income taxes were deducted, some or all of the Box 2 amount may be taxable.
Step 6: Review federal income tax withheld in Box 4
Box 4 shows federal income tax withheld from government payments reported on Form 1099-G, including withholding requested on unemployment benefits. Include the Box 4 amount with total federal withholding when completing the 2013 Form 1040.
If paper filing, attachment practices may apply when withholding is reported, so follow the 2013 return assembly instructions. Retain the Form 1099-G with records supporting withholding and income taxes reported on the federal tax return.
Step 7: Identify RTAA payments and taxable grants in Boxes 5 and 6
Box 5 reports Reemployment Trade Adjustment Assistance payments, which are generally taxable and typically reported as Other Income on the 2013 Form 1040. Box 6 reports taxable grants, which are generally treated as income rather than deductions.
Confirm the payment type using agency notices or award documentation and retain those records with the tax return file. If the payment relates to business activity, reporting may differ, but it should not be treated as a deduction.
Step 8: Confirm Agricultural payments reported in Box 7
Box 7 reports agricultural payments made during 2013, including certain payments connected to the Commodity Credit Corporation and market gain on CCC loans. Compare Box 7 amounts to
USDA or program statements to confirm payment information is complete.
Agricultural payments are generally taxable and often reported under farm reporting rules, depending on the taxpayer’s activity. When a nominee arrangement exists, the payment remains income to the recipient for federal tax return reporting.
Step 9: Report Form 1099-G items on the correct 2013 Form 1040 lines
Unemployment compensation in Box 1 is reported on Form 1040, line 19 for 2013, while taxable state income tax refunds from Box 2 are reported on line 10. RTAA payments and taxable grants from Boxes 5 and 6 are reported on line 21 as Other Income.
Avoid using Schedule 1 references, because Schedule 1 did not apply to the 2013 Form 1040.
Correct line placement supports accurate income tax reporting and reduces mismatch issues with the Internal Revenue Service.
Step 10: Verify identifying information before filing
Confirm that the name, Social Security number, and address on Form 1099-G match those on legal identification and agency records. Incorrect identifying information can create delays or mismatches when the Internal Revenue Service processes the federal income tax return.
If incorrect information appears, request a corrected Form 1099-G before filing the federal tax return. Accurate information supports proper matching and reduces the need for corrections after filing.
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Step 11: Final filing notes and recordkeeping
Retain all Forms 1099-G, agency correspondence, and worksheets used to determine taxable refunds or income classifications for the 2013 tax year. These records support accurate tax reporting and help resolve future questions about government payments.
If a form appears incorrect, file an accurate return using reliable records while requesting a corrected tax form from the issuing agency. Maintaining documentation supports compliance and reduces follow-up issues tied to income tax reporting.
Common Issues to Check Before Submitting the 2013
Return
Confirm unemployment compensation and income tax refunds are not entered twice, especially when different agencies issued multiple Forms 1099-G for the same tax year. Review each entry against payment records and the tax form boxes to avoid overreporting on Form 1040.
Confirm that Box 4 withholding is included with total federal withholding and matches the agency payment records, because missing withholding can change the refund result. When uncertainty remains, a tax professional can confirm correct treatment before submitting the federal income tax return.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
