1099G

The Form 1099-G, Certain Government Payments, is an informational tax form used by government entities to report certain payments made to individuals. This form is issued annually by federal, state, and local governments.

Key types of payments reported on Form 1099-G include unemployment compensation, state and local income tax refunds, credits, or offsets, and taxable grants. If you received unemployment benefits during the tax year, the payer will send you a 1099-G detailing the total amount of benefits received. This amount is generally considered taxable income.

Similarly, if you received a refund, credit, or offset of state or local income taxes, and you itemized deductions on your federal tax return in the prior year and received a tax benefit from those taxes, the amount of the refund may be taxable. The Form 1099-G will specify the amount of the refund and whether it is considered taxable.

Taxable grants from government agencies are also reported on this form. These grants are typically for purposes such as business development or research.

It is important to note that not all government payments require a 1099-G. For instance, certain social security benefits or other non-taxable government payments are not reported on this form. Taxpayers should review their Form 1099-G carefully and report the information accurately on their federal income tax return. If there are any discrepancies or questions about the information on the form, it is advisable to contact the issuing government agency or a tax professional.