What is a Form 1099-G?

It is important to understand what a Form 1099-G is and when it is issued. An IRS Form 1099-G is issued when federal, state and local governments pay someone any of the following:

  • Unemployment compensation
  • State or local income tax refunds, credits or offsets
  • Re-employment trade adjustment assistance payments
  • Taxable grants
  • Agricultural payments

Unemployment benefits and state and local income tax refunds are the most common reasons an employee would receive a 1099-G. By law, these forms are sent to employees by January 31. After an employee files their tax returns, they could receive correspondence from the IRS regarding unreported UI benefits or a notice of State or Federal tax offset. This could be another indication that a fraudulent unemployment claim may have been filed.

 

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