What a 1099-G is, in plain words
Most people get one for one of two reasons: you collected unemployment last year (box 1), or your state sent you a tax refund (box 2).
Unemployment is taxed like wages, but nothing comes out unless you asked for it. That's why a 1099-G so often comes with a bill in April.
A state refund on a 1099-G is usually nothing to worry about. It only counts as income if you itemized deductions on last year's federal return.
Unemployment, severance or a paycheck?
UnemploymentThis form
- Form
- 1099-G
- Taxes taken out
- Nothing, unless you chose 10%
- Social Security and Medicare
- None
- Goes on
- Schedule 1, line 7
Severance→
- Form
- W-2
- Taxes taken out
- Yes, like a paycheck
- Social Security and Medicare
- Yes, 7.65%
- Goes on
- Form 1040, line 1a
Paycheck→
- Form
- W-2
- Taxes taken out
- Yes
- Social Security and Medicare
- Yes, 7.65%
- Goes on
- Form 1040, line 1a
Form 1099-G
What every box means
Tap any box. The ones marked red end up on your tax return.
Form 1099-G Certain Government Payments
2025
Ends up on your return Private: keep it safe
Read all 14 boxes as a list
- Payer Payer's name, address
- The agency that paid you, usually your state's unemployment or revenue department. Your state tax return may treat this money differently from the federal one.
- TIN Recipient's TIN
- Your Social Security number. Check that it's yours. If you never applied for unemployment, the form may mean someone filed a claim in your name. See "What do I do with it?" below.
- Name Recipient's name
- You. On a joint return, it shows whose benefits these were.
- Box 1 Unemployment compensation
- Unemployment benefits paid to you during the year. It's taxed like wages, but no Social Security or Medicare tax comes out of it.Goes on: Schedule 1, line 7
- Box 2 State or local income tax refunds
- A refund of state tax you got this year, for last year. It's taxable only if you itemized last year and deducted the state tax it refunds.Goes on: Schedule 1, line 1 (only if you itemized last year)Cofiled doesn't fill in this line yet. If you took the standard deduction last year, it isn't taxable and you can ignore it.
- Box 3 Box 2 amount is for tax year
- Which year the refund in box 2 belongs to. Usually last year. An older year changes the math.
- Box 4 Federal income tax withheld
- Tax you asked them to hold back from your benefits (a flat 10%). It counts as already paid. Most people never ask for it, which is why the April bill surprises them.Goes on: Form 1040, line 25b
- Box 5 RTAA payments
- Wage subsidy for older workers who lost a job to trade. Taxable, and rare.
- Box 6 Taxable grants
- A government grant that counts as income. Counts as income on Schedule 1.
- Box 7 Agriculture payments
- Farm program payments. Goes on a farm return (Schedule F).
- Box 8 Trade or business income
- A check here means the box 2 refund was a business tax. Rare.
- Box 9 Market gain
- Farm loan gain. Rare.
- Box 10a State
- The state. Which state return this belongs to.
- Box 11 State income tax withheld
- State tax held back from your benefits. Paid toward your state tax.
Where it goes on your tax return
The boxes that become numbers on your return, and the line each one lands on. Tap one to see why.
Box 1Unemployment compensationSchedule 1, line 7
Unemployment benefits paid to you during the year. It's taxed like wages, but no Social Security or Medicare tax comes out of it.
How unemployment is taxedBox 2State or local income tax refundsSchedule 1, line 1 (only if you itemized last year)not yet
A refund of state tax you got this year, for last year. It's taxable only if you itemized last year and deducted the state tax it refunds.
Cofiled doesn't fill in this line yet. If you took the standard deduction last year, it isn't taxable and you can ignore it.
Box 4Federal income tax withheldForm 1040, line 25b
Tax you asked them to hold back from your benefits (a flat 10%). It counts as already paid. Most people never ask for it, which is why the April bill surprises them.
What do I do with it?
Do I have to do anything with it?
If box 1 has money in it, yes: unemployment goes on your federal return. Box 2 only matters if you itemized last year.
I never collected unemployment
Someone may have filed a claim in your name. Report it to the state agency and ask for a corrected 1099-G showing zero. You don't owe tax on money a fraudster took.
I paid some back
If you repaid benefits in the same year, box 1 should already be net of it. Repaid in a later year: it can come off that year's income. Ask the state for the repayment amount in writing.
I never got one
Most states post it in your unemployment account online instead of mailing it. Log in, look for tax documents, and download it.
Lost it, or it never came?
Most states don't mail a 1099-G anymore. It's in your online account.
Tax on unemployment, in plain words- 1Unemployment: log in to your state's unemployment site and look for the 1099-G under tax documents or payment history.
- 2State refund: your state revenue department's site, under your account or a 1099-G lookup.
- 3Past years: your IRS Wage & Income transcript lists 1099-G amounts too.
Free tool
Need the numbers off your 1099-G in a spreadsheet?
Drop the PDF or a photo. Every box comes back as an Excel column. No account, and we keep nothing.
Questions people ask
Is unemployment taxable?
Yes, federally, every dollar. No Social Security or Medicare tax comes out of it, and several states don't tax it at all.
Was some unemployment tax-free in 2020?
Yes, for 2020 only. The first $10,200 per person was excluded if the household's income was under $150,000. If you're catching up on 2020, it still lowers what you owe.
Why did I get a 1099-G for a state refund?
Your state reports every refund it sends. It only counts as income if you itemized last year. Took the standard deduction? You can ignore it.
Can I still have tax withheld from my benefits?
Yes. Ask your state for Form W-4V: a flat 10% comes out of each payment from then on.
Related forms
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