Form 1099-G is a tax document that reports money a government agency paid to you

Form 1099-G reports payments you received from a government source during the tax year. The IRS uses it to track refunds, credits, and other government payouts that might affect what you owe in taxes. If you got an unemployment refund, a state tax refund, or money from a federal or state program, you may receive a 1099-G in the mail or through your state's online portal.

The form arrives because the government agency that paid you is required to report it to the IRS. You do not request it — the agency sends it automatically when they issue a payment over a certain threshold. The threshold varies by state and by the type of payment, but most refunds and credits trigger one.

What matters for your tax return is whether that payment counts as taxable income. Some 1099-G payments are taxable; others are not. The box number on the form tells you which category applies, and that determines whether you have to report it when you file.

Key Takeaways

  • Form 1099-G reports government payments to you, including tax refunds, unemployment benefits, and state credits.
  • The form arrives automatically from the agency that paid you — you do not have to request it.
  • Not all 1099-G income is taxable; the box number on the form tells you whether you must report it on your return.
  • If you received a payment but did not get a 1099-G, contact the agency directly to request a copy or ask whether one was issued.
  • Mismatches between your return and the 1099-G the IRS received can trigger a notice, but you can correct it by filing an amended return.

Which box on Form 1099-G matters for refunds

Form 1099-G has multiple boxes, and the one that applies to you depends on what you received. Box 1 reports state income tax refunds. Box 2 reports federal income tax refunds. Box 3 reports other refunds or credits. Box 5 reports unemployment compensation. Box 6 reports federal agricultural payments.

If you received a state tax refund, look at Box 1. If you received a federal tax refund, look at Box 2. The amount in that box is what the IRS already knows you received. When you file your return, the IRS will compare what you report to what the 1099-G says. If they match, no problem. If they do not match, the IRS will send you a notice asking for an explanation.

Most tax refunds are not taxable income — you already paid that money in taxes, so getting it back is not a gain. However, if you claimed the standard deduction one year and then received a refund for state and local taxes you paid, that refund may be taxable in the year you receive it, depending on your situation and your state's rules.

When a 1099-G refund is taxable and when it is not

A refund of taxes you already paid is generally not taxable. If you overpaid your state income tax in 2023 and received a refund in 2024, that refund is usually not taxable income in 2024. The IRS treats it as a correction of the prior year, not as new income.

The exception is the tax benefit rule. If you claimed a deduction for state and local taxes (SALT) in the year you paid them, and then received a refund of those taxes, the refund may be taxable. This happens most often when someone itemizes deductions, claims SALT, and later gets money back. The logic is that you already got a tax benefit from the deduction, so the refund is taxable.

However, if you took the standard deduction instead of itemizing, your state tax refund is almost never taxable, because you did not get a deduction for those taxes in the first place. Your tax software or preparer can walk through your specific situation, but the general rule is: if you did not deduct it, the refund is not taxable.

What to do if you received a 1099-G but did not get the payment

If a 1099-G arrived in your name but you never received the money it reports, contact the agency that issued it when ready. The form lists the agency name and usually includes a phone number or website. Explain that you received a 1099-G but no payment, and ask them to investigate.

This can happen for several reasons: the payment was mailed to an old address, it was intercepted for a debt offset, or it was issued in error. The agency can tell you which one applies and what to do next. If the payment was offset, they will explain which debt it went toward. If it was mailed to the wrong address, they may reissue it or send it electronically.

Do not ignore the 1099-G. If you do not report the income it shows and the IRS matches it to your return, you will receive a notice. It is easier to contact the agency now and resolve it than to deal with the IRS later.

How the IRS matches your return to the 1099-G they received

When you file your tax return, the IRS runs it against every 1099-G, W-2, and other income document they have on file for you. They match your name, Social Security number, and the amounts you reported. If everything lines up, your return processes normally.

If the amounts do not match — for example, you reported $500 in state refunds but the 1099-G says $750 — the IRS flags it. You will receive a CP2000 notice or similar letter asking you to explain the difference. You have 30 days to respond. You can agree with the IRS, disagree and explain why, or provide documentation showing the correct amount.

If you received a 1099-G for a refund you did not actually get, or if the amount is wrong, respond to the notice with an explanation and any proof you have. If the agency issued the 1099-G in error, ask them for a corrected form (called a corrected 1099-G). You can then send that corrected form to the IRS along with your response.

Corrected 1099-G forms and amended returns

If the agency that issued your 1099-G discovers an error, they will send you a corrected 1099-G, usually marked as such on the form. This corrected version replaces the original. Keep both copies, but report only the amounts on the corrected form when you file.

If you already filed your return and then received a corrected 1099-G, you will need to file an amended return using Form 1040-X. This tells the IRS that your original return had incorrect information and provides the correct amounts. You have three years from the original filing date to amend, though it is better to do it sooner to avoid interest and penalties.

If you received a corrected 1099-G after filing but before the IRS contacted you, file the amended return right away. If the IRS already sent you a notice about the mismatch, include the corrected 1099-G with your response to that notice instead of filing an amendment separately.

How to report a 1099-G on your tax return

Where you report the 1099-G depends on which box the amount is in. State and federal tax refunds (Boxes 1 and 2) go on Schedule 1 of Form 1040, under "Other Income." Unemployment (Box 5) goes on the same line. Your tax software will usually prompt you to enter these amounts and will place them in the right spot automatically.

If the refund is not taxable — which is true for most state and federal tax refunds — you may still need to report it on your return, but it will not increase your tax liability. Some tax software lets you mark it as non-taxable; others require you to report it and then claim an offsetting deduction. The instructions that come with your tax form or software will clarify which approach applies to your situation.

If you are unsure whether a particular 1099-G amount is taxable, check the instructions for Form 1040 or Schedule 1, or consult a tax preparer. The IRS website also has detailed guidance on which refunds are taxable under which circumstances.

Frequently Asked Questions

Do I have to report a 1099-G if the refund was not taxable?

It depends on the type of refund and your state. Most state and federal tax refunds are not taxable and do not have to be reported. However, some states require you to report them anyway, and some tax software includes them automatically. Check your state's tax instructions or ask your preparer whether your specific 1099-G needs to be reported.

What if I lost my 1099-G or never received it?

Contact the agency that issued it and request a copy. They can mail or email you a duplicate. You will need it to file your return accurately and to respond if the IRS contacts you about a mismatch. Most agencies keep records for at least seven years.

Can I file my return without the 1099-G if I know the amount?

You can file without it, but if the IRS receives a 1099-G that does not match your return, you will get a notice. It is safer to wait for the form or request a copy from the agency before filing, so your return and the 1099-G are in sync from the start.

Will a 1099-G affect my refund or increase what I owe?

Only if the income reported on it is taxable. Most tax refunds are not taxable, so the 1099-G will not change your tax liability. Unemployment benefits are taxable, so a 1099-G for unemployment will increase your tax liability unless you had other deductions or credits to offset it.

What does it mean if the IRS sent me a notice about my 1099-G?

It means the amount on your return does not match the amount on the 1099-G they received from the agency. You have 30 days to respond. You can agree, disagree with documentation, or provide a corrected 1099-G from the agency. Respond promptly to avoid additional notices or penalties.