Form 1099-G Checklist – 2019 Tax Year
Purpose and Reporting Scope
Form 1099-G reports certain government payments, including unemployment compensation, state and local income tax refunds, reemployment trade adjustment assistance payments, taxable grants, and agriculture payments made during the 2019 calendar year. Payers must report Box 2 refunds attributable to specific tax years in Box 3, and when Box 3 remains blank, the refund applies to 2018 taxes by default. Copy B must reach recipients by January 31, 2020, and Copy A must be filed with the Internal Revenue Service by February 28, 2020, for paper submissions or March 31, 2020, for electronic filing.
Box 1: Unemployment Compensation Reporting
Report total unemployment benefits paid during 2019 in Box 1 using exact amounts paid rather than estimates. Distinguish between contributions to governmental unemployment programs and paid family leave programs, and issue separate Form 1099-G for each program type when applicable. Recipients report Box 1 amounts as taxable income on their 2019 Form 1040.
Box 2 and Box 3: Tax Refunds and Year Identification
Enter state or local income tax refunds, credits, or offsets issued in 2019 in Box 2. Identify the tax year the refund applies to in Box 3 to enable proper tax benefit rule application.
When Box 3 remains blank, recipients interpret the refund as relating to 2018 taxes under the 2019 instructions. Box 2 refunds are taxable only if the recipient deducted the original state or local income tax on Schedule A for the applicable year, subject to the SALT cap limits enacted under the Tax Cuts and Jobs Act for the 2018 through 2025 period.
Box 8: Trade or Business Income Classification
Check Box 8 if the Box 2 amount represents an income tax applicable exclusively to trade or business income rather than a tax of general application. This checkbox alerts recipients that the refund may be reported on Schedule C or Schedule F instead of as an itemized deduction adjustment. Proper classification helps recipients determine the correct reporting line on their 2019 tax returns.
Box 4: Federal Income Tax Withheld
Report federal income tax withheld on unemployment compensation, Commodity Credit Corporation loans, or crop disaster payments in Box 4. Include amounts withheld due to a missing taxpayer identification number through backup withholding procedures, as well as amounts the recipient requested be withheld voluntarily. This withholding applies to 2019 income, and recipients claim it as tax paid on their annual returns.
Box 5: Reemployment Trade Adjustment Assistance
Include all reemployment trade adjustment assistance payments issued during 2019 in Box 5 without combining them with other payment types. Recipients must report Box 5 amounts on Schedule 1 of Form 1040 on the line designated for other income. This reporting location reflects the 2019 Form 1040 redesign that moved supplemental income items to Schedule 1.
Box 6: Taxable Government Grants
Report taxable grants from federal, state, or local government received by the recipient in 2019 in Box 6. Exclude non-taxable grants as determined by the issuing agency or the Internal Revenue Code. Recipients include Box 6 amounts in their gross income for 2019 unless a specific exclusion applies.
Box 7 and Box 9: Agriculture Payments and Market Gain
Enter Department of Agriculture payments or nominee payments attributable to agriculture income in Box 7 for the 2019 tax year. Report market gain on Commodity Credit Corporation loans repaid by cash or CCC certificates in Box 9. Recipients use Publication 225 to determine proper classification and reporting of these amounts on Schedule F or other applicable forms for 2019.
State Tax Reporting Requirements
Complete Box 10a with the two-letter state abbreviation, Box 10b with the state identification number, and Box 11 with state income tax withheld during 2019. This information enables recipients to file accurate state tax returns for the 2019 tax year. State reporting requirements vary by jurisdiction, and payers must provide this data to ensure compliance with state-level obligations.
Form Assembly and Copy Distribution
Prepare Copy A in red ink using official Internal Revenue Service scannable forms exclusively, as downloaded and printed forms from the IRS website cannot be used for IRS filing. The 2019 instructions emphasize that Copy A must be the official IRS-printed form because the paper is scannable during processing, and penalties may be imposed for submitting non-scannable copies. Prepare Copy B in black ink for the recipient, Copy 1 for the state tax department, Copy 2 for the recipient’s state filing, and retain Copy C for payer records.
Filing Requirements and Transmittal
Attach Form 1099-G Copy A to Form 1096 Annual Summary and Transmittal when filing paper returns. Verify all recipient taxpayer identification numbers, payer taxpayer identification numbers, and dollar amounts for accuracy before submitting. Electronic filing requires Internal Revenue Service-approved software that generates files according to Publication 1220 specifications for the 2019 tax year.
Filing Deadlines
Furnish Copy B to recipients by January 31, 2020, ensuring timely delivery for their 2019 tax return preparation. File Copy A with the Internal Revenue Service by February 28, 2020, for paper submissions. Electronic filers receive an extension to March 31, 2020, providing an additional month compared to the paper deadline and reflecting 2019 filing procedures.
Corrected Forms Procedure
Mark any corrected form with the word CORRECTED if you discover an error on a 2019 Form 1099-G after filing. File an amended Form 1099-G with the Internal Revenue Service using the same due date extension as the original submission. Furnish the corrected Copy B to the recipient immediately to enable accurate tax return preparation or amendment.
Recipient Tax Treatment Considerations
Recipients claiming itemized deductions must apply the tax benefit rule to Box 2 refunds when determining taxability for 2019. The state and local tax deduction cap under the Tax Cuts and Jobs Act affects refund taxability calculations. However, the form instructions do not calculate the cap, and recipients must reconcile amounts against their SALT deduction ceiling. Box 3 provides the critical tax year identifier that recipients need to determine which year’s deduction to compare against the refund amount received in 2019.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
