What Form 1099-G (2013) Is For
Form 1099-G (2013) is a tax form issued by government agencies to report certain government payments made to taxpayers during the 2013 tax year. It includes unemployment compensation, state income tax refunds, and taxable grants that are considered taxable income. The Internal Revenue Service uses this information to ensure that your income tax return reflects all taxable unemployment compensation and other payments you received. Anyone who received unemployment benefits or state income taxes refunded by a state government during the calendar year should review this form carefully before filing.
When You’d Use Form 1099-G (2013)
Taxpayers use Form 1099-G when preparing their federal income tax return or amended return for the year. If you received unemployment insurance benefits, a refund of state income taxes, or other taxable government payments, this form reports the total amount paid. You should receive a paper copy by mail or electronic access from your state government by January 31, 2014. If you did not receive the form or your address has changed, please contact the Department of Labor or the issuing agency to request an updated form. Even if you do not receive it, you are still required to include the income on your tax return.
Key Rules or Details for 2013
- Reporting threshold: Government agencies must issue Form 1099-G when unemployment compensation or other certain payments exceed $10. Even if you do not receive a form, the income is still considered taxable and must be reported on your federal income tax return.
- Unemployment compensation: All unemployment benefits, including unemployment insurance payments, are fully taxable. The Internal Revenue Service treats unemployment as taxable income, so it should be included in your federal taxable income for the year.
- Withholding options: You can request that federal income tax be withheld from your unemployment compensation. This option helped many claimants reduce their federal taxes owed when filing.
- State tax refunds: State income tax refunds are taxable only if you itemized deductions on your previous federal tax return. If you took the standard deduction, your refund is not considered taxable income.
- Reporting fraud: If your Form 1099-G shows payments you did not claim, you may be a victim of unemployment fraud or identity theft. Contact your state government immediately to report fraud and request a corrected 1099-G tax form.
- Multiple payments: If you received various types of government payments, such as unemployment insurance and taxable grants, you may receive separate forms from each department. Each form should be reviewed and included when determining your total taxable income for the year.
Browse more tax form instructions and filing guides in our Forms Hub.
Step-by-Step (High Level)
Step 1: Gather Your Forms
Collect all Forms 1099-G received from government agencies. Confirm that your name, address, and Social Security number are correct and match your records.
Step 2: Verify Payment Details
Check that the total amount of unemployment compensation and state tax refunds listed matches the payments you actually received. If you notice errors, contact the state department of labor to request a corrected form.
Step 3: Determine Taxability
Review each payment type carefully to determine if it is subject to tax. Unemployment benefits are taxable income. In contrast, certain government payments, such as some grants, may also be considered taxable income depending on their purpose.
Step 4: Report on Your Tax Return
Include all taxable unemployment compensation and state tax refunds on your federal income tax return. Follow IRS instructions for the correct lines and verify that federal taxes withheld appear as a credit toward your total tax due.
Step 5: Keep Records
Retain all 1099-G forms, unemployment claims, and correspondence with government agencies. Keeping complete records ensures you can verify your income and respond to any IRS requests or identity theft claims.
Learn more about federal tax filing through our IRS Form Help Center.
Common Mistakes and How to Avoid Them
- Forgetting to include unemployment income: Some taxpayers fail to include unemployment benefits on their income tax return. To avoid this, double-check your 1099-G form and report all unemployment compensation as taxable income.
- Reporting a state refund incorrectly: Many filers mistakenly include state income tax refunds when they take the standard deduction. Review your prior federal tax return to determine whether your rebate is taxable before including it.
- Not checking for identity theft: If your 1099-G lists unemployment benefits you did not receive, report fraud immediately to your state’s department of labor. This prevents further misuse of your personal information.
- Ignoring withheld taxes: If the form shows federal income tax withheld, include that amount as a credit on your return. Doing so ensures accurate computation of your refund or balance due.
- Failing to verify payment year: Always confirm that the tax year listed matches the calendar year in which payments were made. Using an incorrect tax year may result in filing errors or additional correspondence from the IRS.
Learn more about how to avoid business tax problems in our guide on How to File and Avoid Penalties.
What Happens After You File
After submitting your federal income tax return, the Internal Revenue Service compares your reported unemployment compensation, taxable grants, and income tax refunds against the information provided on your 1099-G form. If everything matches, processing continues normally. If there are discrepancies, the IRS may send a notice requesting clarification. Keep your tax information and payment records in case the agency contacts you. Timely reporting also helps reduce the risk of penalties or identity-related issues involving unemployment insurance benefits.
FAQs
What should I do if I have never received my Form 1099-G tax form for unemployment compensation?
If you received unemployment benefits but did not get your 1099-G form, contact your state government’s labor department. You can usually access a paper copy online or request one by mail. Even without the form, report the total amount paid on your income tax return.
How do I report fraud on my 1099-G tax form?
If your 1099-G shows unemployment insurance benefits or government payments you did not claim, you may be a victim of unemployment fraud. Report fraud to your state government immediately using their online fraud portal or phone line. Keep all correspondence for your records.
Is my 1099-G form information considered taxable income on my federal tax return?
Yes, unemployment compensation, certain government payments, and taxable grants are considered taxable income under Internal Revenue Service rules. Include these amounts when filing your federal income tax return.
What happens if identity theft causes incorrect payments on my 1099-G form?
If you suspect identity theft, contact your state government agency and the IRS Identity Protection unit. Report the issue, submit an identity theft affidavit if required, and request a corrected 1099-G form to prevent errors on your tax return.
How can I determine if my state income tax refund is taxable?
Review your prior federal tax return. If you itemized deductions for state income taxes, your refund may be taxable. If you used the standard deduction, your state refund is not considered taxable income.
