The 1099-G form is a type of 1099 form used to report certain types of income that you receive from the government. One of the most common reasons for receiving a 1099-G form is receiving unemployment compensation.
How does the 1099-G form work?
The 1099-G form is a type of 1099 form used to report certain types of income that you receive from the government – the letter “G” stands for government. One of the most common reasons for receiving a 1099-G form is receiving unemployment compensation.
Note: If you received unemployment benefits, you must pay taxes on them. A survey conducted by Jackson Hewitt found that 39% of people are unaware that unemployment benefits are taxable.
Another scenario in which you might receive a 1099-G form is when you receive a tax refund from state or local authorities, or a credit or compensation. This does not necessarily mean that you will owe taxes – you will only need to report that money on your tax return if you received a federal tax deduction for paying those taxes in the previous year.
Who uses the 1099-G form?
Federal, state, and local governments issue this form when the following payments are made:
- Unemployment compensation
- State or local income tax refunds
- State or local income tax credits
- Reemployment and trade adjustment assistance payments
- Taxable grants
- Agricultural payments
If you received any of the forms of income listed above from the government, you will receive a 1099-G form. You should expect to receive a separate form from each agency that made the payment.
Note: As early as 2021, the U.S. Bureau of Labor Statistics reported that 13.3 million people were unable to find work. By December, this number dropped to 6.9 million unemployed, but despite the decrease, all taxpayers who received government assistance in 2021 are likely to receive a 1099-G form in 2022.
Where can you get the 1099-G form?
If you did not receive payments from the government that could be considered taxable income, you will not receive a 1099-G form. However, most taxpayers who received such payments can expect to receive a 1099-G form by mail. You may also be able to view and download the form online, depending on the state or agency. Forms are typically mailed by the end of January.
Note: If you received a 1099-G form for unemployment benefits that you did not receive, you may be a victim of identity theft. Report potential fraud to the government agency that paid the benefits and follow their instructions.
What to do if you did not receive a 1099-G form?
If you received unemployment benefits or any other income that should be reported on a 1099-G form and did not receive the form, contact the agency that made the payment. You may be able to access your form online, or the agency may provide other instructions.
However, if you cannot access the information by the tax deadline of April 15, you are still responsible for filing a tax return. You can estimate the payments made to you, as well as any taxes withheld. If you receive the missing information after filing and discover a discrepancy, you will need to file an amended tax return.
How to file the 1099-G form?
You will not need to file the 1099-G form with your tax return, but you will use the information listed on this form to file your taxes. Using tax filing software is usually the best way to ensure the accuracy of your return. You will enter the information from the 1099-G form, along with any other tax forms you received, and the software will calculate the amount of taxable income and whether you owe taxes.
Once
Submit your declaration, and store the 1099-G form with your other tax records. As with all tax records, you’ll want to keep the form for at least three years.
Other Types of 1099 Forms
The 1099 form is used to report income that you do not receive from an employer. While receiving a 1099 form doesn’t necessarily mean you owe money on that income, it’s essential to use the information in it when preparing your tax return.
The form includes your Social Security number or Employer Identification Number, so the IRS will know that you received the income. Some common types of 1099 forms include:
- Form 1099-A, Acquisition or Abandonment of Secured Property
- Form 1099-C, Cancellation of Debt
- Form 1099-DIV, Dividends and Distributions
- Form 1099-INT, Interest Income
- Form 1099-MISC, Miscellaneous Income
- Form 1099-NEC, Nonemployee Compensation
- Form 1099-R, Distributions from Retirement Plans
- Form 1099-SSA, Social Security
Frequently Asked Questions (FAQs)
How do I know if I need to file a 1099-G?
If you received at least $10 in government assistance in the form of unemployment benefits, or any rebates or agricultural payments or adjustments or compensations for local or state income tax refunds from previous years, you will need to report it on your tax return using Form 1099-G. Form 1099-G will also apply if you received at least $600 in taxable grants or from the Reemployment Trade Adjustment Assistance (RTAA) program.
When will I receive my 1099-G?
You should receive it by mail by the end of January. If you have not received it by that time, contact the paying agency or funds to request a form or seek assistance from a tax professional.
What should I do with my 1099-G once I receive it?
You will use this form to help calculate your total income when filing your taxes. Box 1 provides any unemployment benefits you received, which should be reported in your total income on Form 1040. Box 2 contains information regarding local or state tax adjustments or refunds. The remaining boxes on the form relate to specific types of government assistance, and can all be entered into Form 1040 according to the provided instructions.
Source: https://www.thebalancemoney.com/what-is-form-1099-g-5118088
Leave a Reply