What Form 1099-G Is For
Form 1099-G (2015) is a tax form issued by government agencies to report certain government payments that may be considered taxable income. This includes unemployment compensation, state income tax refunds, and taxable grants. The Internal Revenue Service uses this information to confirm your federal tax return reflects all income received during the tax year. If you received unemployment benefits, local income tax refunds, or other government payments, you’ll get this form from your state government or another department. Each box lists a payment type, total amount, and whether any federal or state income tax was withheld.
When You’d Use Form 1099-G
You’ll use Form 1099-G when filing your federal income tax return if you received unemployment compensation, a state income tax refund, or other government payments during 2015. These payments must be reported on your tax return to determine your federal taxable income. If you file late or need to correct errors, request an updated form or paper copy from your state government agency. The easiest and fastest way to access it is usually through your state labor department’s website.
Key Rules or Details for Tax Year 2015
- Unemployment compensation: Unemployment insurance benefits are considered taxable income and must be reported as such.
- State income tax refunds: State income tax refunds or local income tax refunds may be taxable if you claimed itemized deductions in the previous tax year.
- Federal and state tax withheld: Any federal income tax or state income tax withheld can be claimed as a credit on your return.
- Taxable Grants and Payments: Certain government payments and taxable grants are also considered reportable income under IRS rules.
- Corrected or updated forms: If you suspect identity theft or unemployment fraud, contact the issuing department to request a corrected or updated form.
- Filing deadlines: Agencies must mail or post all 1099-G forms by early February of the calendar year following the year in which the payments were made.
Browse more tax form instructions and filing guides in our Forms Hub.
Step-by-Step (High Level)
Step 1: Review your Form 1099-G
Verify your name, address, and Social Security number. Ensure that the state tax is deducted, and that the total amount of unemployment compensation and other payments is accurate.
Step 2: Identify which government payments apply
Determine which boxes list unemployment benefits, refunds, or taxable grants. Each must be reported correctly to calculate taxable income.
Step 3: Report on your federal return
Transfer the payments to the correct lines on your federal income tax return. Include federal or state income tax withheld as credits toward taxes paid.
Step 4: Keep copies for your records
Keep a paper copy of your Form 1099-G and related tax forms for at least three years to verify details or file an amended federal return if needed.
Learn more about federal tax filing through our IRS Form Help Center.
Common Mistakes and How to Avoid Them
- Forgetting to report unemployment compensation: Always report all unemployment insurance benefits to avoid IRS penalties.
- Reporting nontaxable refunds: Only include state income tax refunds if you itemized deductions previously.
- Ignoring corrected forms: File an amended tax return if you receive a corrected or updated form.
- Losing your 1099-G: Contact your state agency or labor department to request a replacement copy.
- Failing to report fraud: Report fraud or identity theft immediately if your form lists payments you didn’t receive.
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 filing, the IRS compares your tax return with Form 1099-G data from government agencies. If everything matches, your refund or bill is processed normally. If there’s a difference—such as unreported unemployment benefits—the IRS will notify you. If you were a victim of unemployment fraud or identity theft, report it quickly to both your state agency and the IRS.
FAQs
What is the Form 1099-G used for?
The 1099-G tax form reports government payments, such as unemployment compensation, state income tax refunds, and taxable grants, to ensure your tax return accurately reflects all income.
How should unemployment benefits be reported on my tax return?
Unemployment benefits are taxable unemployment compensation. Report the full amount shown on your Form 1099-G as income on your federal tax return.
What should I do if I suspect unemployment fraud or identity theft on my 1099-G form?
Contact your state agency and the IRS right away to report fraud or identity theft. Request a corrected form to ensure your tax record remains accurate.
How can I correct errors or update tax information on my Form 1099-G?
If there’s an error, contact the issuing government agency for a corrected or updated form before filing your tax return.
Do I need to report state tax refunds on my federal return?
Only if you itemized deductions in the prior year, refunds aren’t taxable if you used the standard deduction.
What should I do if I didn’t receive my Form 1099-G?
Contact your state labor department. The easiest and fastest way is usually through their website or online tax form portal.
How can I prevent future fraud or incorrect 1099-G forms from being issued?
Keep your personal and tax information secure, and report any signs of fraud quickly to your state agency and the IRS.
