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What is a 1099-G Form?

What is a 1099-G form and what is the 1099-G tax form used for?

The 1099-G tax form is used to report certain government payments such as:

  • unemployment compensation including:
    • amount received under unemployment compensation law of the US or of a state
  • state and local refunds
Why do I receive 1099-G form?

Taxpayers who receive a refund of state or local taxes may receive a Form 1099-G. If the taxpayer has unemployment compensation, he or she will also receive the tax form 1099-G.

Are the state refunds taxable?

State refund are not taxable if in the year the taxpayer paid tax, either she or he:

  • did not itemize deductions or
  • elected to deduct state and local general sales taxes instead of state and local income tax.

In another word, the state refunds are taxable if:

  • the taxpayer itemized deductions in the tax year, and
  • the taxpayer received a state or local tax refund

In this case, the taxpayer will have to include all or part of the refund in his or her taxable income.

What is a 1099-G form

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