Instructions for Form 1099-G (Rev. December 2026)

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Instructions for Form 1099-G
(Rev. December 2026)

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.
You can get Pub. 1099, General Instructions for Certain
Information Returns, at IRS.gov/1099GeneralInstructions.

What’s New
State paid family and medical leave programs. Rev. Rul.
2025-4 requires states to file with the IRS and furnish to an
employee a Form 1099 to report family leave benefits paid by
state paid family and medical leave programs. Box 10, Family
leave benefits, was added to Form 1099-G to facilitate this
reporting requirement. Consequently, state information boxes
10a, 10b, and 11 on Form 1099-G have been renumbered as
11a, 11b, and 12, respectively. For more information, see Rev.
Rul. 2025-4, 2025-7 I.R.B. 758.
Address fields. For the Payer’s and Recipient’s information, we
separated the address fields into individual entry boxes.
Continuous-use revisions. Use the December 2026 revision
of Form 1099-G and these instructions to file 2026 information
with the IRS in early 2027. Also use them to furnish the
information to the recipient. Continue to use these revisions for
subsequent years until we issue a superseding revision. Do not
use these revisions for prior years.
E-filing returns. The Taxpayer First Act of 2019 authorized the
Department of the Treasury and the IRS to issue regulations that
reduce the 250-return e-file threshold. T.D. 9972, published
February 23, 2023, lowered the e-file threshold to 10 (calculated
by aggregating all information returns), effective for information
returns required to be filed on or after January 1, 2024. Go to
IRS.gov/InfoReturn for e-file options.
Information Returns Intake System (IRIS). The IRS has
developed IRIS, an online portal for e-filing information returns.
Go to IRS.gov/IRIS for more information.

Reminders

In addition to these specific instructions, you should use the
current Pub. 1099, 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.

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.
Oct 10, 2025

Continuous-use instructions. Use these instructions for tax
year 2026 and subsequent years until a superseding revision is
issued.
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.

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; family leave benefits; 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.
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 Pub. 1099.

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 filed with the IRS. A payer’s TIN may not be
truncated on any form. See part J in Pub. 1099.

Country

For a list of country codes, go to IRS.gov/CountryCodes.

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

Instructions for Form 1099-G (Rev. 12-2026) Catalog Number 27979M
Department of the Treasury Internal Revenue Service www.irs.gov

number for all Forms 1099-G that you file. See part L in Pub.
1099.

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 Pub. 1099.
Tip: For information on the TIN Matching System offered by the
IRS, see Items You Should Note in Pub. 1099.
Caution: States have experienced a surge in fraudulent
unemployment claims. Criminals are engaging in identity 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.

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, 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
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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 that meets or exceeds the applicable
reporting threshold on a refund, you must file Form 1099-INT,
Interest Income, and furnish a statement to the recipient. See
Pub. 1099 for information on the applicable reporting threshold.

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
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 Pub. 1099.
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
11a Through 12. State Information, later. However, you are not
required to report state withholding to the IRS.
Caution: Voluntary withholding on RTAA payments is not
permitted.

Box 5. RTAA Payments

Enter RTAA payments made to eligible individuals under the
Reemployment Trade Adjustment Assistance program if the total
amount paid meets or exceeds the applicable reporting
threshold. See Pub. 1099 for information on the applicable
reporting threshold.

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 if the total amount
paid meets or exceeds the reporting threshold. See Pub. 1099
for information on the applicable reporting threshold. 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
Instructions for Form 1099-G (Rev. 12-2026)

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.

Box 10. Family Leave Benefits

If you make payments of family leave benefits under a
governmental paid family and medical leave program, enter the
total amount before any income tax was withheld if the total
amount paid meets or exceeds the applicable reporting
threshold. See Pub. 1099 for information on the applicable
reporting threshold. If you withheld federal income tax at the
request of the recipient, enter it in box 4.

Instructions for Form 1099-G (Rev. 12-2026)

Boxes 11a Through 12. 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. 5717 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 11a, enter the abbreviated name of the state. In box 11b,
enter the filer’s state identification number. The state number is
the filer’s identification number assigned by the individual state.
In box 12, 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
tax department. Give Copy 2 to the recipient for use in filing the
recipient’s state income tax return.

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