Question

Form 1099-G - Unemployment, Tax Refunds, RTAA, and More

Accepted Answer

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.