This form documents payments from government agencies that may affect your tax return.

You may receive Form 1099-G if you received:

• Unemployment benefits (all states)
• State or local tax refunds (if $10+ and you itemized deductions)
• Certain government grants or assistance payments
• Agricultural program payments
• Trade adjustment assistance benefits
• Alternative trade adjustment assistance

• Unemployment (Box 1): Fully taxable as ordinary income
• State Refunds (Box 2): Taxable only if you itemized deductions in prior year
• Grants (Box 3): Taxable unless for qualified education expenses
• Agricultural (Box 5): Generally taxable as ordinary income
• Trade Assistance (Box 6): May be partially taxable

1. Unemployment Compensation:
   • Report on Schedule 1 (Form 1040), Line 7
   • Include in total income on Form 1040
2. State Tax Refunds:
   • Report on Schedule 1 (Form 1040), Line 1 if taxable
   • Use IRS Worksheet to determine taxable portion
3. Other Payments:
   • Report according to specific payment type
   • Consult IRS guidelines or tax professional

• Unemployment Tax Break: Check for special pandemic-era exclusions
• Joint State Returns: Refund may need allocation between spouses
• Local Tax Refunds: Different rules may apply
• Withholding Adjustments: May need to adjust estimated tax payments

Maintain these records for 3+ years:

• All 1099-G forms received
• Unemployment benefit statements
• Prior year tax return (for state refund calculations)
• Documentation of any tax withholding
• Grant award letters or documentation