Form 1099-G, Certain Government Payments, is the form a federal, state or local government unit sends when it paid you unemployment compensation, a state or local income tax refund, credit or offset, family leave benefits, a taxable grant or an agricultural payment. As of October 2026, unemployment and state refunds are reported when they reach $10 or more.
Most people meet it in January, either from the state unemployment office or from the state tax department after a refund. Business owners meet it too: refunds of a state tax on unincorporated business income, USDA payments and energy grants all land on this form.
Who files Form 1099-G
Only a unit of government files it. The IRS instructions list the payments: unemployment compensation, state or local income tax refunds, credits or offsets, family leave benefits, Reemployment Trade Adjustment Assistance (RTAA) payments, taxable grants and agricultural payments. It's also filed for anyone the payer withheld federal tax from under the backup withholding rules, whatever the amount.
Payments that look similar but are for services, prizes or incentives don't go here. Those may belong on Form 1099-MISC or 1099-NEC, which our 1099-MISC vs 1099-NEC guide explains.
What each box on Form 1099-G means
| Box | What it reports |
|---|---|
| 1 | Unemployment compensation of $10 or more, including Railroad Retirement Board unemployment payments |
| 2 | State or local income tax refunds, credits or offsets of $10 or more |
| 3 | The tax year the box 2 amount relates to, if it isn't the current one |
| 4 | Federal income tax withheld, either backup or voluntary |
| 5 | RTAA payments |
| 6 | Taxable grants, such as energy conservation or production grants |
| 7 | USDA agricultural subsidy payments |
| 8 | A checkbox: the box 2 refund came from a tax that applies only to trade or business income |
| 9 | Market gain on repayment of a Commodity Credit Corporation (CCC) loan |
| 10 | Family leave benefits from a government paid family and medical leave program |
| 11a to 12 | State information, used for up to two states |
Box 10 is new. The IRS added it because Rev. Rul. 2025-4 requires states to report family leave benefits paid by state paid family and medical leave programs, and the old state boxes 10a, 10b and 11 were renumbered 11a, 11b and 12.
Why you got a 1099-G for a state tax refund
A state refund is only potentially taxable if you deducted state or local tax on your federal return the year before. That's why the IRS lets the state skip sending you a box 2 statement if it can tell you didn't itemize deductions for that year.
Business owners should note the exception. A refund of a tax on the net taxable income of an unincorporated business counts as an income tax refund, and the state must send you a 1099-G for it whether or not you itemized. The box 8 tick is the clue that the refund relates to a business-only tax.
Unemployment and withholding
Box 1 shows the total before any income tax was taken off. Federal tax withheld goes in box 4. Withholding on unemployment, CCC loans and certain crop disaster payments is voluntary, at your request. If you didn't have tax taken off a large unemployment total, plan for the bill or look at estimated tax payments.
Backup withholding is different. For payments in boxes 5, 6 and 7, the payer must withhold at a rate of 24% if you didn't give your taxpayer identification number or the IRS says it's wrong. Voluntary withholding on RTAA payments isn't permitted.
What to do if your 1099-G is wrong
- Compare box 1 with the payments you received from the unemployment office, and box 2 with the refund the state sent.
- Check box 3. A refund for an earlier year should show that year in YYYY format.
- If the form shows unemployment you never claimed, treat it as identity theft. The IRS instructions warn that states have seen a surge in fraudulent unemployment claims.
- Contact the agency that issued it and ask for a corrected form before you file.
A fake 1099-G is one of the first signs someone has used your details to claim benefits, so don't ignore it just because you weren't paid.
Account numbers and repeat TIN notices
If an agency sends you more than one 1099-G, each should carry an account number, and the IRS encourages payers to use one on every form. Payers who've been told twice within 3 calendar years that a recipient's taxpayer identification number is wrong can tick the 2nd TIN Not. box, which stops further IRS notices about that account. If you see backup withholding in box 4 that you didn't expect, a missing or mismatched number is the usual reason, so update your details with the agency.
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Deadlines and copies
Pub. 1099 gives January 31 as the payee statement date for most information returns, so a 1099-G usually arrives in January. Government payers can truncate your Social Security number on your copy, but never on the IRS copy. Copies 1, B and 2 are fillable online as PDFs, and anyone filing 10 or more information returns in a year has to e-file.
The verdict
A 1099-G isn't a bill, it's a record. Check that the unemployment total and the refund are yours and are for the right year, and if a form shows benefits you never applied for, report it straight away. For a business, the box 8 tick is the one line I'd look at twice.
Frequently asked questions
Who sends Form 1099-G?
A federal, state or local government unit that paid you unemployment, a state or local tax refund, family leave benefits, a taxable grant, RTAA or agricultural payments.
Is a state tax refund on a 1099-G taxable?
Only if you deducted state or local tax on your federal return for that year. That's why a state may not send you a box 2 statement if you didn't itemize.
What is box 10 on Form 1099-G?
Box 10 reports family leave benefits paid under a government paid family and medical leave program. It was added for the December 2026 revision.
What's the minimum for a 1099-G?
Unemployment compensation in box 1 and state refunds in box 2 are reported at $10 or more.
I got a 1099-G for unemployment I never claimed. What now?
Treat it as possible identity theft, contact the agency that issued it and ask for a corrected form before you file.
What does box 8 on a 1099-G mean?
The tick means the box 2 refund came from an income tax that applies only to trade or business income, not a tax of general application.
