The Internal Revenue Service requires business entities, government agencies and others to provide taxpayers with proper forms reporting financial transactions. The IRS uses an assortment of forms with the number 1099 and various letter designations. Collectively, 1099 forms are called "information returns." As a general rule, the business or agency files one copy of certain 1099 forms with the federal tax agency, keeps a copy, and provides another copy to the taxpayer. Tax form 1099-G is one such information form.
Certain Government Payments
As with all federal 1099 forms, the Form 1099-G is used for specific purposes. Officially titled "Certain Government Payments," you should be given a 1099-G if you received certain types of income or benefits during the prior tax year. The IRS imposes deadlines for delivery of the forms. For instance, those entities required to file the form must do so by February 28 with the IRS, or by March 31 if filing electronically. Recipients, who are taxpayers that need the information to file personal income tax returns, should receive their copy by January 31.
Reporting Unemployment Pay
If you receive unemployment compensation sometime during the year, the appropriate government agency will send you a Form 1099-G at the end of the tax year. The form will detail not only how much unemployment benefits you received, but also any taxes withheld. For example, if you arranged to have federal and state income taxes withheld from your unemployment compensation, this will be reported on the 1099-G. Box 4 of the form shows the total federal income tax withheld. Box 11 reports state income tax withheld, where applicable. You will then use this information when filing your own income taxes.
Taxpayers who receive a refund or a credit of state or local taxes may receive a 1099-G form reporting the amount. This reporting is necessary if you choose to itemize federal taxes and claim the state and local taxes as a deduction. However, if the state or local revenue department knows that you do not itemize, you are not likely to receive the 1099-G.
Additional circumstances that require the use of the 1099-G form include agriculture payments or subsidies, taxable grants and Trade Adjustment Assistance payments. TAA payments are benefits and services provided by the federal government to workers who have lost jobs that have been relocated out of the United States.
- Internal Revenue Service: 1099 General Instructions
- Internal Revenue Service: Certain Government Payments
- Internal Revenue Service: Instructions for Form 1099-G, Certain Government Payments
- United States Department of Labor Employment and Training Administration: Trade Adjustment Assistance (TAA) and Alternative Trade Adjustment Assistance (ATAA) Services and Benefits
Vicki A Benge began writing professionally in 1984 as a newspaper reporter. A small-business owner since 1999, Benge has worked as a licensed insurance agent and has more than 20 years experience in income tax preparation for businesses and individuals. Her business and finance articles can be found on the websites of "The Arizona Republic," "Houston Chronicle," The Motley Fool, "San Francisco Chronicle," and Zacks, among others.