Instructions for Form 1099-G Checklist: 2019 Tax Year
Government agencies use Form 1099-G to report government payments made during the 2019 tax year, most commonly unemployment compensation and state or local income tax refunds issued to individuals. These amounts may affect the recipient’s federal income tax return, so accurate classification and box placement are essential before filing Form 1040 or other applicable tax forms.
This checklist follows Internal Revenue Service guidance applicable to calendar year 2019 payments and recipient statements, which are generally furnished by January 31, 2020. It is designed as a filing and compliance reference for reporting entities preparing the 1099-G Form and maintaining support documentation for information returns.
Step-by-Step Form 1099-G Filing Checklist
Step 1: Confirm the Filing Requirement Applies
Confirm the reporting entity is required to file Form 1099-G based on government payments made during calendar year 2019 under applicable Internal Revenue Service reporting thresholds. Common triggers include receiving unemployment benefits. Compensation, the issuance of income tax refunds, or other governmental programs within the scope of the 1099-G tax form.
Resolve classification questions before preparing forms, as the correct box assignment depends on accurate identification of the payment type. Early confirmation prevents misreporting and reduces the need for corrected filings later in the tax season.
Step 2: Verify Recipient Identification Information
Confirm the recipient’s legal name and taxpayer identification number match verified records maintained by the government agency or the tax department issuing the payment. Accurate recipient details support proper matching by the Internal Revenue Service and reduce notices related to incorrect information returns.
If furnishing a recipient statement, ensure truncation rules are followed only where permitted and never applied to forms filed with the IRS. Consistent identification across systems helps maintain reliable reporting for state and federal tax administration purposes.
Step 3: Identify the Correct Payment Category
Determine the actual nature of each payment before selecting a reporting box on the 1099-G
Form. This approach avoids misclassifying payments that resemble income tax refunds but are actually taxable grants or other governmental assistance.
Unemployment compensation must be reported only in Box 1, while state or local income tax refunds belong in Box 2 when thresholds are met. Payments that do not fit these categories should be carefully evaluated before reporting.
Step 4: Complete Box 1 for Unemployment Compensation
Enter the total unemployment compensation paid during calendar year 2019 in Box 1, using the gross amount before any federal withholding. Amounts should reflect unemployment insurance benefits administered through unemployment services or similar state labor programs.
If multiple contributory programs are involved, maintain separation by program where required by reporting rules. Accurate aggregation ensures the recipient can report the correct total on the federal tax return.
Step 5: Complete Box 2 for State or Local Income Tax Refunds
Enter state or local income tax refunds, credits, or offsets of ten dollars or more in Box 2 when issued during the 2019 tax year. This includes refunds paid directly, offsets applied to liabilities, or credits administered by a state tax department.
Confirm the payment qualifies as a state income tax refund rather than another type of governmental program payment. Correct classification supports accurate reporting under
Schedule A rules for recipients.
Step 6: Use Box 3 to Identify the Related Tax Year
Box 3 is used only to identify the tax year associated with the Box 2 refund or credit amount.
Enter the applicable year in YYYY format when the refund relates to a year other than the current reporting year.
If refunds relate to more than one tax year, prepare separate Forms 1099-G for each year. This prevents combining amounts that must be reported separately for recipient tax return purposes.
Step 7: Report Federal Income Tax Withheld in Box 4
Enter voluntary federal income tax withheld in Box 4 when withholding was applied to unemployment compensation or other eligible government payments. Ensure Box 4 aligns only with payments reported on the same form and is not duplicated across filings.
Withholding amounts reported here are treated as payments on the recipient’s Federal Tax
Return. Accurate reconciliation supports proper crediting and reduces recipient inquiries.
Step 8: Complete State Information Boxes When Applicable
Boxes 10a through 11 may be completed when participating in combined federal and state filing programs or meeting state-specific requirements. Use these boxes only when required by the applicable state tax department or filing program.
Provide Copy 1 to the state when required and Copy 2 to the recipient for state tax return preparation. Consistent handling supports coordination between federal and state reporting obligations.
Step 9: Manage Corrected and Duplicate Forms Properly
Maintain clear controls to distinguish original, corrected, and void forms within the reporting system. If an error is discovered, issue a corrected Form 1099-G using established correction procedures.
Avoid informal duplicate labeling that can create reporting confusion. Clear version control ensures recipients and tax authorities rely on the correct information.
Step 10: File, Furnish, and Retain Support Documentation
Furnish Copy B to recipients by January 31, 2020, for payments made during calendar year
2019, and file Copy A with the Internal Revenue Service by the applicable deadline based on filing method. Reconcile aggregate totals for unemployment compensation, income tax refunds, and withholding before submission to reduce correction risk.
Maintain internal records supporting recipient identification, payment authorization, and execution for all reported government payments, because support files are not submitted with the 1099-G Form. Strong documentation supports compliance reviews, reconciliation, and future correction needs.
Final Pre-Submission Review
Confirm each box is used only for its intended payment category and that Box 3 reflects the correct tax year when required. Verify recipient identification accuracy and ensure Copy B furnishing meets the January 31 deadline.
Confirm that the filing method, deadlines, and reconciliations are complete before submission.
This review helps ensure accurate reporting and reduces the need for follow-up from the
Internal Revenue Service.
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