Form 1099-G – Unemployment, Tax Refunds, RTAA, and More
Form 1099-G is used to report a variety of government payments, including:
- Unemployment compensation (Box 1) – See Form 1040 – Unemployment Compensation for details on data entry.
- State or local income tax refunds, credits, or offsets (Box 2) – See Form 1099-G – Box 2 – Entering State Income Tax Refund in Program for details.
- RTAA payments (Box 5) – See Form 1099-G – Box 5 – RTAA Payments for details.
- Taxable grants (Box 6) – See Form 1099-G – Box 6 – Taxable Grants for details.
- Agricultural payments (Box 7) – See Form 1099-G – Box 7 – Agricultural Payments for details.
Box 4 reports federal income tax withheld from any payments that are reported on Form 1099-G.
Notices
If you received an IRS notice related to Form 1099-G, it may be due to one of the following common entry errors:
- A Form 1099-G was not entered in the TaxAct program and the income was not reported elsewhere in the return.
- An amount was transposed or omitted (e.g. $12,123 was entered instead of $21,123).
- Unemployment compensation was reported, but the user entered the amount in the “Unemployment Repaid” field instead, which lowered the taxable amount.
- The taxpayer received a state or local income tax refund and:
- selected “Did Not Itemize Last Year” when they did itemize, or
- entered incorrect amounts for the prior year Schedule A deductions, which reduced the taxable portion of the refund.