Form 1099-G, Certain Government Payments, is used to report several types of payments you may receive from a federal, state, or local government agency. Where you enter the form in the program depends on which box contains the income.
Here's a breakdown of the most common Form 1099-G entries and where to report them.
Box 1: Unemployment Compensation
If you received unemployment benefits during the year, report the amount from Box 1 in the unemployment income section.
To enter unemployment compensation:
- Go to Federal
- Select Income (Select My Forms)
- Choose 1099-G Box 1
If federal income tax was withheld and reported in Box 4, enter the withholding information within this same unemployment entry.
Box 2: State or Local Tax Refunds
Box 2 reports state or local income tax refunds you received. This amount is generally only relevant if you itemized deductions on your federal return in the prior year.
Depending on your situation, all, part, or none of the refund may be taxable on your federal return.
To enter a state tax refund:
- Go to Federal
- Select Income (Select My Forms)
- Choose 1099-G Box 2
Box 3: Tax Year of the Refund
Box 3 identifies the tax year to which the state or local refund shown in Box 2 applies. This information is used when determining whether any portion of the refund is taxable.
Box 5: RTAA Payments
Box 5 reports payments received under the Reemployment Trade Adjustment Assistance (RTAA) program.
To report RTAA payments:
- Go to Federal
- Select Income (Select My Forms)
- Choose Less Common Income
- Select Other Income Not Reported Elsewhere
Box 6: Taxable Grants
Box 6 reports taxable grants received from a federal, state, or local government agency.
To enter taxable grant income:
- Go to Federal
- Select Income (Select My Forms)
- Choose Less Common Income
- Select Other Compensation
- Choose Scholarships and Grants
Box 7: Department of Agriculture Payments
Box 7 reports taxable payments from the U.S. Department of Agriculture related to farming activities.
To report agricultural payments:
- Go to Federal
- Select Income (Select My Forms)
- Choose Profit or Loss From Farming (Schedule F)
- Enter the amount under Taxable Amount of Agricultural Payments (Income)
Box 9: Market Gain on CCC Loans
Box 9 reports market gain on Commodity Credit Corporation (CCC) loans.
Depending on your situation, report the amount in one of the following Schedule F income sections:
- Go to Federal
- Select Income (Select My Forms)
- Choose Profit or Loss From Farming (Schedule F)
- Enter the amount as either:
- Taxable Amount of Agricultural Payments (Income), or
- Taxable Amount of Crop Insurance Proceeds Received This Tax Year
Boxes 10 and 11: State Tax Information
Boxes 10 and 11 provide state tax withholding information.
Except for unemployment compensation entries, state tax withholding reported on Form 1099-G is generally entered separately as Other State Withholding.
To enter state withholding:
- Go to Federal
- Select Payments and Estimates
- Choose Other State Withholding
Before You File
Review each box on your Form 1099-G carefully before entering it. Not every box is reported in the same place, and some payments, such as state tax refunds, may only be taxable under certain circumstances. Entering the information in the correct section helps ensure your return is accurate and that any withholding credits are properly applied to your tax return.