Certain Government Payments

Instructions for Form 1099-G

Department of the Treasury
Internal Revenue Service

(Rev. March 2024)

Certain Government Payments
Section references are to the Internal Revenue Code unless
otherwise noted.

Future Developments

For the latest information about developments related to Form
1099-G and its instructions, such as legislation enacted after
they were published, go to IRS.gov/Form1099G.

What’s New
Replacement of lead service lines. Announcement 2024-10
addresses the federal income tax treatment of certain lead
service line replacement programs for residential property
owners. The replacement of lead service lines under the
programs described in the announcement does not result in
income. Water systems and state governments are not required
to file information returns or furnish payee statements with
respect to the replacement of lead service lines under these
programs. For more information, see Announcement 2024-10,
2024-11 I.R.B. 711.

Reminders

In addition to these specific instructions, you should also use the
current General Instructions for Certain Information Returns.
Those general instructions include information about the
following topics.
• Who must file.
• When and where to file.
• Electronic reporting.
• Corrected and void returns.
• Statements to recipients.
• Taxpayer identification numbers (TINs).
• Backup withholding.
• Penalties.
• Other general topics.
You can get the general instructions from General Instructions
for Certain Information Returns at IRS.gov/
1099GeneralInstructions or go to IRS.gov/Form1099G.
Online PDF fillable Copies 1, B, and 2. To ease statement
furnishing requirements, Copies 1, B, and 2 are fillable online in
a PDF format available at IRS.gov/Form1099G. You can
complete these copies online for furnishing statements to
recipients and for retaining in your own files.
Continuous-use form and instructions. Form 1099-G and
these instructions have been converted from an annual revision
to continuous use. Both the form and instructions will be updated
as needed. For the most recent version, go to IRS.gov/
Form1099G.

Specific Instructions

File Form 1099-G, Certain Government Payments, if, as a unit of
a federal, state, or local government, you made payments of
unemployment compensation; state or local income tax refunds,
credits, or offsets; Reemployment Trade Adjustment Assistance
(RTAA) payments; taxable grants; or agricultural payments. You
must also file this form if you received payments on a Commodity
Credit Corporation (CCC) loan. The officer or employee of the
government unit having control of the payments, received or
made, (or the designated officer or employee) must file Form
1099-G.
Mar 14, 2024

You must also file Form 1099-G for each person from whom
you have withheld any federal income tax (report in box 4) under
the backup withholding rules regardless of the amount of the
payment.
Certain amounts that are not reportable on Form 1099-G,
such as compensation for services, prizes, and certain
incentives, may be reportable on Form 1099-MISC,
Miscellaneous Information, or Form 1099-NEC, Nonemployee
Compensation. See the Instructions for Forms 1099-MISC and
1099-NEC for more information.

Statements to Recipients

If you are required to file Form 1099-G, you must furnish the
same information to the recipient. Furnish a copy of Form
1099-G or an acceptable substitute statement to each recipient,
except as explained later under Box 2. State or Local Income Tax
Refunds, Credits, or Offsets. Also, see part M in the current
General Instructions for Certain Information Returns.
Truncating recipient’s TIN on payee statements. Pursuant to
Regulations section 301.6109-4, all filers of this form may
truncate a recipient’s TIN (social security number (SSN),
individual taxpayer identification number (ITIN), adoption
taxpayer identification number (ATIN), or employer identification
number (EIN)) on payee statements. Truncation is not allowed on
any documents the filer files with the IRS. A payer's TIN may not
be truncated on any form. See part J in the current General
Instructions for Certain Information Returns.

Account Number

The account number is required if you have multiple accounts for
a recipient for whom you are filing more than one Form 1099-G.
Additionally, the IRS encourages you to designate an account
number for all Forms 1099-G that you file. See part L in the
current General Instructions for Certain Information Returns.

2nd TIN Not.

You may enter an “X” in this box if you were notified by the IRS
twice within 3 calendar years that the taxpayer provided an
incorrect TIN. If you mark this box, the IRS will not send you any
further notices about this account.
However, if you received both IRS notices in the same year, or
if you received them in different years but they both related to
information returns filed for the same year, do not check the box
at this time. For purposes of the two-notices-in-3-years rule, you
are considered to have received one notice and you are not
required to send a second “B” notice to the taxpayer on receipt of
the second notice. See part N in the current General Instructions
for Certain Information Returns for more information.
For information on the TIN Matching System offered by

TIP the IRS, see Items You Should Note in the current

General Instructions for Certain Information Returns.

States have experienced a surge in fraudulent
unemployment claims. Criminals are engaging in identity
CAUTION theft (IDT) to fraudulently collect benefits across multiple
states. For information on reporting IDT and other types of
unemployment fraud, including claimant fraud or employer fraud,
go to DOL.gov/agencies/eta/UIIDtheft.

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Cat. No. 27979M

Box 1. Unemployment Compensation

Enter payments of $10 or more in unemployment compensation,
including Railroad Retirement Board payments for
unemployment. If you make payments from a contributory
program that has been deemed to be in the nature of
unemployment compensation, such as California's Family
Temporary Disability Insurance payments or governmental paid
family leave program payments, file a separate Form 1099-G for
payments from each contributory program. Enter the total
amount before any income tax was withheld. If you withhold
federal income tax at the request of the recipient, enter it in
box 4; see the instructions below.

Box 2. State or Local Income Tax Refunds,
Credits, or Offsets

Enter refunds, credits, or offsets of state or local income tax of
$10 or more you made to recipients. These include refunds or
carryforward credits of overpayments of tax due to refundable
state tax credits and incentive payments that are paid under an
existing state tax law and administered by the state taxing
agency. Filmmaker incentive credits, home improvement credits
paid in low-income areas, and solar panel installation credits are
some types of state programs which are generally reportable in
box 2, to the extent a refund is paid by the state taxing agency or
amount allowed as carryforward credit to the next tax year.

Do not enter in box 2 payments that are not state income tax
refunds, credits, or offsets. This may include payments made
under state grant, incentive, subsidy, or other individual
assistance programs. Taxable grants are reported in box 6; see
the instructions below. If recipients deducted the tax paid to a
state or local government on their federal income tax returns, any
refunds, credits, or offsets may be taxable to them. You are not
required to furnish a copy of Form 1099-G or a substitute
statement to the recipient if you can determine that the recipient
did not claim itemized deductions on the recipient's federal
income tax return for the tax year giving rise to the refund, credit,
or offset. However, you must file Form 1099-G with the IRS in all
cases.
A tax on dividends, a tax on net gains from the sale or
exchange of a capital asset, and a tax on the net taxable income
of an unincorporated business are taxes on gain or profit rather
than on gross receipts. Therefore, they are income taxes, and
any refund, credit, or offset of $10 or more of these taxes is
reportable on Form 1099-G. In the case of the dividends tax and
the capital gains tax, if you determine that the recipient did not
itemize deductions, as explained above, you are not required to
furnish a Form 1099-G or substitute statement to the recipient.
However, in the case of the tax on unincorporated businesses,
you must furnish a Form 1099-G or substitute statement to the
recipient in all cases, as this is a tax that applies exclusively to
income from a trade or business. See Box 8. Trade or Business
Income (Checkbox), later, and Rev. Rul. 86-140, 1986-2 C.B.
195.
If you pay interest of $600 or more on the refund, you must file
Form 1099-INT, Interest Income, and furnish a statement to the
recipient. For interest payments of less than $600, you may
choose to enter the amount with an appropriate designation
such as “Interest Income” in the blank box on Copy B of the Form
1099-G.

Box 3. Box 2 Amount Is for Tax Year

No entry is required in box 3 if the refund, credit, or offset is for
the current tax year. If it is for any other tax year, enter the year
for which the refund, credit, or offset was made. Also, if the
refunds, credits, or offsets are for more than 1 tax year, report the
amount for each year on a separate Form 1099-G. Use the
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format “YYYY” to make the entry in this box. For example, enter
“2020,” not “20.”

Box 4. Federal Income Tax Withheld
Backup withholding. Enter backup withholding on payments
required to be reported in box 5, 6, or 7. You must backup
withhold on such payments at a rate of 24% if a recipient does
not furnish its TIN to you or if you are notified by the IRS that the
TIN is incorrect (Notice CP2100 or CP2100A). For more
information on backup withholding, see part N in the current
General Instructions for Certain Information Returns.
Voluntary withholding. Enter any voluntary federal withholding
on unemployment compensation, CCC loans, and certain crop
disaster payments. If you withhold state income tax, see Boxes
10a Through 11. State Information, later. However, you are not
required to report state withholding to the IRS.

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Voluntary withholding on RTAA payments is not
permitted.

CAUTION

Box 5. RTAA Payments

Enter RTAA payments of $600 or more that you paid to eligible
individuals under the Reemployment Trade Adjustment
Assistance program.

Box 6. Taxable Grants

Enter any amount of a taxable grant administered by a federal,
state, or local program to provide subsidized energy financing or
grants for projects designed to conserve or produce energy, but
only with respect to energy property or a dwelling unit located in
the United States. Also, enter any amount of a taxable grant
administered by an Indian tribal government.
Report amounts of other taxable grants of $600 or more.
State and local grants are ordinarily taxable for federal income
purposes. A federal grant is ordinarily taxable unless stated
otherwise in the legislation authorizing the grant. Do not report
scholarship or fellowship grants. See Scholarships in the
Instructions for Forms 1099-MISC and 1099-NEC.

Box 7. Agriculture Payments

Enter USDA agricultural subsidy payments made during the
year, including market facilitation program payments. If you are a
nominee that received subsidy payments for another person, file
Form 1099-G to report the actual owner of the payments and
report the amount of the payments in box 7.

Box 8. Trade or Business Income (Checkbox)

If the amount in box 2 is a refund, credit, or offset attributable to
an income tax that applies exclusively to income from a trade or
business and is not a tax of general application, enter an “X” in
this box.

Box 9. Market Gain

Report market gain associated with the repayment of a CCC
loan whether repaid using cash or CCC certificates.

Boxes 10a Through 11. State Information

These boxes may be used by filers who participate in the
Combined Federal/State Filing Program and/or who are required
to file paper copies of this form with a state tax department. See
Pub. 1220 for more information regarding the Combined Federal/
State Filing Program. They are provided for your convenience
only and need not be completed for the IRS. Use the state
information boxes to report payments for up to two states. Keep
the information for each state separated by the dash line. In
box 10a, enter the abbreviated name of the state. In box 10b,
Instructions for Form 1099-G (Rev. 3-2024)

enter the filer's state identification number. The state number is
the filer's identification number assigned by the individual state.
In box 11, enter the amount of any state income tax withheld.
If a state tax department requires that you send them a paper
copy of this form, use Copy 1 to provide information to the state

Instructions for Form 1099-G (Rev. 3-2024)

tax department. Give Copy 2 to the recipient for use in filing the
recipient's state income tax return.

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