Form 1099-G: Unemployment and State Refund Boxes Explained
Form 1099-G (Certain Government Payments) is filed by a federal, state, or local government unit that made payments such as unemployment compensation (box 1) or state or local income tax refunds, credits, or offsets (box 2); the IRS instructions (Rev. December 2026) have the filer enter payments of $10 or more in either box, and the Publication 1099 (2026) Guide gives January 31 for the recipient and February 28 on paper or March 31 electronically for the IRS. The box-by-box table, the IRS wording on how boxes 1 and 2 are treated, and the renumbered state boxes are below.
Maintained by Archie Chang · Sources checked against IRS text on November 2, 2026 · Methodology & sources
Who sends Form 1099-G
The IRS instructions address the government unit that files the form:
“File Form 1099-G, Certain Government Payments, if, as a unit of a federal, state, or local government, you made payments of unemployment compensation; state or local income tax refunds, credits, or offsets; family leave benefits; Reemployment Trade Adjustment Assistance (RTAA) payments; taxable grants; or agricultural payments. You must also file this form if you received payments on a Commodity Credit Corporation (CCC) loan. The officer or employee of the government unit having control of the payments, received or made, (or the designated officer or employee) must file Form 1099-G.”
The IRS About Form 1099-G page gives a shorter list:
“Federal, state, or local governments file this form if they made payments of:
Unemployment compensation.
State or local income tax refunds, credits, or offsets.
Reemployment trade adjustment assistance (RTAA) payments.
Taxable grants.
Agricultural payments.
They also file this form if they received payments on a Commodity Credit Corporation (CCC) loan.”
When we checked on November 2, 2026, the IRS About Form 1099-G page did not name family leave benefits in its list; the Instructions for Form 1099-G (Rev. December 2026) name them. This page does not list individual state agencies, so it does not say which agency sent a particular form.
The instructions add a rule for backup withholding and a pointer to the other 1099 forms:
“You must also file Form 1099-G for each person from whom you have withheld any federal income tax (report in box 4) under the backup withholding rules regardless of the amount of the payment.”
“Certain amounts that are not reportable on Form 1099-G, such as compensation for services, prizes, and certain incentives, may be reportable on Form 1099-MISC, Miscellaneous Information, or Form 1099-NEC, Nonemployee Compensation. See the Instructions for Forms 1099-MISC and 1099-NEC for more information.”
Form 1099-G box by box
The table follows the boxes printed on Form 1099-G (Rev. December 2026). The third column is the IRS’s own sentence for the box, and the last column is the amount the IRS prints for it. Where the box instructions refer to “the applicable reporting threshold”, the instructions send the filer to Publication 1099, and the amount shown comes from its Guide to Information Returns.
| Box | Printed on the form | What the instructions say | Amount the IRS states |
|---|---|---|---|
| 1 | Unemployment compensation | Enter payments of $10 or more in unemployment compensation, including Railroad Retirement Board payments for unemployment. | $10 or more |
| 2 | State or local income tax refunds, credits, or offsets | Enter refunds, credits, or offsets of state or local income tax of $10 or more you made to recipients. | $10 or more |
| 3 | Box 2 amount is for tax year | No entry is required in box 3 if the refund, credit, or offset is for the current tax year. | No dollar amount in this box |
| 4 | Federal income tax withheld | Backup withholding. Enter backup withholding on payments required to be reported in box 5, 6, or 7. […] Voluntary withholding. Enter any voluntary federal withholding on unemployment compensation, CCC loans, and certain crop disaster payments. | Backup withholding: regardless of the amount of the payment |
| 5 | RTAA payments | Enter RTAA payments made to eligible individuals under the Reemployment Trade Adjustment Assistance program if the total amount paid meets or exceeds the applicable reporting threshold. | $2,000 or more (Publication 1099 (2026) Guide; adjusted for inflation every year) |
| 6 | Taxable grants | Enter any amount of a taxable grant administered by a federal, state, or local program to provide subsidized energy financing or grants for projects designed to conserve or produce energy, but only with respect to energy property or a dwelling unit located in the United States. Also, enter any amount of a taxable grant administered by an Indian tribal government. Report amounts of other taxable grants if the total amount paid meets or exceeds the reporting threshold. | Any amount of a taxable grant for subsidized energy financing or for projects designed to conserve or produce energy, and any amount of a taxable grant administered by an Indian tribal government; for other taxable grants, the reporting threshold, which the Publication 1099 (2026) Guide gives as $2,000 or more (adjusted for inflation every year) |
| 7 | Agriculture payments | Enter USDA agricultural subsidy payments made during the year, including market facilitation program payments. | No dollar amount in this box |
| 8 | Check if box 2 is trade or business income | If the amount in box 2 is a refund, credit, or offset attributable to an income tax that applies exclusively to income from a trade or business and is not a tax of general application, enter an “X” in this box. | Checkbox; no dollar amount |
| 9 | Market gain | Report market gain associated with the repayment of a CCC loan whether repaid using cash or CCC certificates. | No dollar amount in this box |
| 10 | Family leave benefits | If you make payments of family leave benefits under a governmental paid family and medical leave program, enter the total amount before any income tax was withheld if the total amount paid meets or exceeds the applicable reporting threshold. | $2,000 or more (Publication 1099 (2026) Guide; adjusted for inflation every year) |
| 11a-12 | State information (11a State, 11b State identification no., 12 State income tax withheld) | They are provided for your convenience only and need not be completed for the IRS. | No dollar amount stated |
The Guide prints one amount for several boxes and says how it changes:
“Form Title What to report Amounts to report To IRS To recipient (unless indicated otherwise)”
“1099-G Certain Government Payments
[…]
$10 or more for refunds and unemployment; $2,000**** or more for reemployment trade adjustment assistance program payments, taxable grants, governmental paid family leave program payments
February 28* January 31”
“****The amount is adjusted for inflation every year. Go to IRS.gov/InflationAdjustment for the current year inflation-adjusted amount.”
Renumbered boxes on the Rev. December 2026 form
The instructions explain why the state boxes carry different numbers than on earlier revisions:
“Rev. Rul. 2025-4 requires states to file with the IRS and furnish to an employee a Form 1099 to report family leave benefits paid by state paid family and medical leave programs. Box 10, Family leave benefits, was added to Form 1099-G to facilitate this reporting requirement. Consequently, state information boxes 10a, 10b, and 11 on Form 1099-G have been renumbered as 11a, 11b, and 12, respectively.”
“Use the December 2026 revision of Form 1099-G and these instructions to file 2026 information with the IRS in early 2027. Also use them to furnish the information to the recipient. Continue to use these revisions for subsequent years until we issue a superseding revision. Do not use these revisions for prior years.”
Box 1 and box 4: unemployment compensation
IRS Tax Topic 418 tells recipients what the form shows and how the IRS describes unemployment compensation. For the instructions on withholding, box 4 is where the filer enters voluntary federal withholding on unemployment compensation.
“Generally, you must include in income all unemployment compensation you receive.”
“You should receive a Form 1099-G, Certain Government Payments, showing the amount of unemployment compensation paid to you during the year in Box 1, and any federal income tax withheld in Box 4.”
“Voluntary withholding. Enter any voluntary federal withholding on unemployment compensation, CCC loans, and certain crop disaster payments.”
The unemployment benefits by state page links the state unemployment calculators, which cover benefit amounts, not what box 1 is about. Tax Topic 418 also says what the IRS expects when the box 1 amount is wrong:
“Victims of fraud who receive Forms 1099-G with inaccurate amounts of unemployment compensation in Box 1 should notify the state agencies of the inaccuracies and request corrected Forms 1099-G.”
Box 2: state or local income tax refunds, credits, or offsets
The instructions say what does not belong in box 2:
“Do not enter in box 2 payments that are not state income tax refunds, credits, or offsets. This may include payments made under state grant, incentive, subsidy, or other individual assistance programs.”
They then describe the filer’s duties and when the amount may be taxable to the recipient:
“If recipients deducted the tax paid to a state or local government on their federal income tax returns, any refunds, credits, or offsets may be taxable to them. You are not required to furnish a copy of Form 1099-G or a substitute statement to the recipient if you can determine that the recipient did not claim itemized deductions on the recipient’s federal income tax return for the tax year giving rise to the refund, credit, or offset. However, you must file Form 1099-G with the IRS in all cases.”
“However, in the case of the tax on unincorporated businesses, you must furnish a Form 1099-G or substitute statement to the recipient in all cases, as this is a tax that applies exclusively to income from a trade or business.”
The text printed for recipients on Copy B of the form says this about box 2:
“Box 2. Shows refunds, credits, or offsets of state or local income tax you received. It may be taxable to you if you deducted the state or local income tax paid on Schedule A (Form 1040). Even if you did not receive the amount shown, for example, because (a) it was credited to your state or local estimated tax, (b) it was offset against federal or state debts, (c) it was offset against other offsets, or (d) you made a charitable contribution from your refund, it is still taxable if it was deducted.”
The statement to the recipient is covered in a separate passage that points back to box 2:
“If you are required to file Form 1099-G, you must furnish the same information to the recipient. Furnish a copy of Form 1099-G or an acceptable substitute statement to each recipient, except as explained later under Box 2. State or Local Income Tax Refunds, Credits, or Offsets. Also, see part M in Pub. 1099.”
Due dates
The Instructions for Form 1099-G (Rev. December 2026) do not give the January 31, February 28 or March 31 dates; those come from the Guide to Information Returns in Publication 1099 (2026). In the Guide’s Form 1099-G row the first date is in the To IRS column and the second in the To recipient column, and a footnote covers electronic filing:
“* The due date is March 31 if filed electronically.”
The Guide also says what happens when a due date falls on a weekend or holiday:
“If any filing due date in these instructions falls on a Saturday, Sunday, or a legal holiday, you will be considered to have timely filed if you file by the next day that is not a Saturday, Sunday, or a legal holiday. Legal holidays for this purpose are legal holidays in the District of Columbia or a statewide legal holiday where the return is required to be filed.”
The instructions describe a low e-file threshold:
“T.D. 9972, published February 23, 2023, lowered the e-file threshold to 10 (calculated by aggregating all information returns), effective for information returns required to be filed on or after January 1, 2024.”
What this page does not cover
- The Instructions for Form 1099-G (Rev. December 2026) do not state penalty amounts, and this page does not cover state filing rules or the delivery methods of any state agency.
- Whether a particular refund or benefit is taxable to a particular recipient is not decided here; the passages above are what the IRS wrote, with their qualifiers.
Frequently asked questions
What is Form 1099-G?
The IRS instructions (Rev. December 2026) have a federal, state, or local government unit file Form 1099-G, Certain Government Payments, if it made payments of unemployment compensation; state or local income tax refunds, credits, or offsets; family leave benefits; Reemployment Trade Adjustment Assistance (RTAA) payments; taxable grants; or agricultural payments. The unit also files it if it received payments on a Commodity Credit Corporation (CCC) loan.
What do box 1 and box 2 of Form 1099-G report?
Box 1 is unemployment compensation: the instructions say to enter payments of $10 or more, including Railroad Retirement Board payments for unemployment. Box 2 is state or local income tax refunds, credits, or offsets: the instructions say to enter amounts of $10 or more the filer made to recipients.
Does the IRS say unemployment compensation on a 1099-G is taxable?
IRS Tax Topic 418 says: “Generally, you must include in income all unemployment compensation you receive.” It also says a Form 1099-G shows the amount of unemployment compensation paid during the year in Box 1 and any federal income tax withheld in Box 4.
Does the IRS say a state tax refund on a 1099-G is taxable?
The instructions say that if recipients deducted the tax paid to a state or local government on their federal income tax returns, any refunds, credits, or offsets may be taxable to them. They also say the filer is not required to furnish a copy to the recipient if it can determine that the recipient did not claim itemized deductions for the tax year giving rise to the refund, credit, or offset, but must file Form 1099-G with the IRS in all cases. For the tax on unincorporated businesses, the instructions say the filer must furnish a Form 1099-G or substitute statement to the recipient in all cases.
What changed on the Rev. December 2026 Form 1099-G?
The instructions say Box 10, Family leave benefits, was added to Form 1099-G, and that state information boxes 10a, 10b, and 11 have been renumbered as 11a, 11b, and 12, respectively. The instructions also say the December 2026 revision is the one to use to file 2026 information with the IRS in early 2027.
When is Form 1099-G due?
The Guide to Information Returns in Publication 1099 (2026) shows February 28 in the To IRS column, with a footnote that the due date is March 31 if filed electronically, and January 31 in the To recipient column. It also says that if a due date falls on a Saturday, Sunday, or legal holiday, a return is timely if filed by the next day that is not one.
What does the IRS say about a 1099-G for unemployment compensation the person did not receive?
IRS Tax Topic 418 says: “Victims of fraud who receive Forms 1099-G with inaccurate amounts of unemployment compensation in Box 1 should notify the state agencies of the inaccuracies and request corrected Forms 1099-G.”
Related IRS form pages and calculators
Sources (checked November 2, 2026): IRS: Instructions for Form 1099-G (Rev. December 2026), PDF · IRS: Form 1099-G (Rev. December 2026), PDF · IRS: About Form 1099-G · IRS: Tax Topic 418, Unemployment compensation · IRS: Publication 1099, General Instructions for Certain Information Returns (2026), PDF