Instructions for Form 1099-G Checklist: 2018 Tax Year
Form 1099-G reports certain government payments issued during the 2018 tax year, including
unemployment compensation, state income tax refunds, and other program payments. This checklist supports accurate review and reporting on a federal income tax return.
The guidance follows 2018 IRS instructions for the 1099-G tax form and reflects recipient-side verification steps. It focuses on identifying reportable government payments and placing amounts correctly on Schedule 1 and related forms.
Step-by-Step Form 1099-G Filing Checklist
Step 1: Confirm that the form matches the records
Verify the form shows tax year 2018 and lists the correct taxpayer name and truncated identification number, ensuring alignment with Internal Revenue Service records and avoiding identity theft-related mismatches. Confirm the payer is the appropriate government agency, such as a state unemployment office or tax department, responsible for issuing the reported government payments.
If the form is marked corrected, treat it as a replacement for a prior version and rely only on the updated figures. Multiple Forms 1099-G may be issued when payments were received from more than one state or jurisdiction.
Step 2: Review Box 1 unemployment compensation
Box 1 reports total unemployment compensation paid during the 2018 tax year before federal withholding or offsets, including amounts from unemployment insurance benefits administered by state or local agencies. Compare the reported amount to state unemployment services payment histories or year-end summaries to confirm accuracy.
When multiple Forms 1099-G report unemployment benefits, combine all Box 1 amounts for federal income tax reporting. For 2018, unemployment compensation is generally taxable and reported as income on Schedule 1 of Form 1040.
Step 3: Review Box 4 federal income tax withheld
Box 4 shows federal income tax withheld from reported government payments, commonly when voluntary withholding was elected on unemployment benefits. Verify the amount against agency records or online account dashboards showing withholding elections and payment details.
Include Box 4 amounts with total federal withholding on the federal income tax return. If withholding appears inconsistent with elections, contact the issuing tax department for clarification or correction.
Step 4: Review Boxes 2 and 3 state refunds and tax year
Box 2 reports state or local income tax refunds, credits, or offsets issued during 2018, including amounts applied to liabilities rather than paid directly. Box 3 identifies the tax year associated with the Box 2 amount, often reflecting a prior-year return.
Reconcile Box 2 to state income tax refund notices, transcripts, or correspondence from the state tax department. Remember the form reports amounts issued in 2018, even when the related tax year shown in Box 3 is earlier.
Step 5: Determine whether Box 2 is taxable
A state income tax refund reported in Box 2 is not automatically taxable on a federal tax return.
Taxability generally depends on whether the taxpayer itemized deductions and received a federal tax benefit in the prior year.
If the standard deduction was claimed for 2017, the refund is usually not taxable in 2018. When itemizing deductions, include state income taxes. Follow the worksheet or tax preparation software guidance to determine the taxable portion.
Step 6: Report unemployment compensation on the correct line
For tax year 2018, total unemployment compensation is reported on Schedule 1, Line 19, and flows into Form 1040 income totals. Use the sum of all Box 1 amounts from every 1099-G received.
Using the correct line placement avoids common errors caused by later-year form changes.
Always follow 2018-specific instructions when preparing the federal income tax return.
Step 7: Review Box 5 RTAA payments
Box 5 reports Reemployment Trade Adjustment Assistance payments received during 2018 under qualifying governmental programs. These amounts are reported separately from unemployment compensation and require supporting program documentation.
If Box 5 is populated, report it in accordance with the 2018 Form 1040 instructions for RTAA
Payments. When Box 5 is blank, no action is required for this section.
Step 8: Review Box 6 taxable grants
Box 6 reports taxable grants paid by a federal, state, or local government agency during the tax year. Identify the specific governmental program and retain award letters or payment notices for verification.
Do not assume all government payments are taxable grants, as only amounts specifically reported in Box 6 qualify. Skip this section when Box 6 is blank.
Step 9: Validate offsets and credits in Box 2
Box 2 may report amounts even when no cash payment was received, such as offsets applied to estimated taxes or other state obligations. This reporting reflects state income tax refunds credited or redirected through governmental programs.
If Box 2 does not match bank deposits, review state account transcripts or correspondence explaining offsets. These amounts are still reportable on the 1099-G tax form.
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Step 10: Address errors before or after filing
When amounts appear incorrect due to identity theft or reporting errors, contact the issuing agency and request a corrected Form 1099-G. Maintain documentation, such as payment histories, letters, and screenshots, to support the actual amounts received.
If a corrected form is issued after filing, determine whether an amended return is required using
Form 1040-X. Amend only when corrections change taxable income or withholding.
Quick Reference: Key Boxes on Form 1099-G
Box 1 reports unemployment compensation, Box 2 reports state or local income tax refunds, credits, or offsets, and Box 3 identifies the tax year related to the amounts in Box 2. Review each populated box carefully to confirm government payments match payer records before entering amounts on a federal income tax return.
Box 4 shows federal income tax withheld, Box 5 reports RTAA payments, and Box 6 reports taxable grants, so each box should be matched to supporting program statements or tax department correspondence. This completes the corrected Form 1099-G checklist for tax year
2018 and supports accurate reporting on the federal return.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
