U.S. · Tax forms
1099-G box 1 unemployment.
Unemployment, state tax refunds, family leave and the other boxes on the government payments statement.
Form 1099-G is issued by a government agency. Box 1 is unemployment compensation paid to you in the year. Report it on Form 1040 Schedule 1, line 7. Box 2 is a state or local income tax refund, which is taxable only if you itemized the deduction for that tax in the year you paid it. Box 4 is federal income tax withheld. If the box 1 figure is wrong, report only what was actually paid to you.
Look up a 1099-G box
Result
Form 1099-G boxes
| Box | Meaning | Where it goes (per the IRS instructions) |
|---|---|---|
| Box 1 | Unemployment compensation: Payments of $10 or more, including Railroad Retirement Board unemployment payments, before any income tax was withheld. | Schedule 1 (Form 1040), line 7. Reduce by contributions if you do not itemize; repayments are subtracted. |
| Box 2 | State or local income tax refunds, credits or offsets: Refunds, credits or offsets of $10 or more of state or local income tax, including refundable state credits paid under state tax law. | Taxable only to the extent you deducted that tax on Schedule A in the year you paid it. None is taxable if you did not itemize or elected the sales tax deduction. |
| Box 3 | Box 2 amount is for tax year: The tax year the box 2 refund is for. Blank if it is for the current year. | Helps you work out which year’s deduction it recovers. |
| Box 4 | Federal income tax withheld: Backup withholding on boxes 5, 6 or 7 at 24%, or voluntary withholding on unemployment, CCC loans and certain crop disaster payments. | Form 1040 line 25b (federal tax withheld on Forms 1099). |
| Box 5 | RTAA payments: Reemployment Trade Adjustment Assistance payments, when the total meets the reporting threshold. | Schedule 1 line 8z, per the 1040 instructions. |
| Box 6 | Taxable grants: Taxable grants from federal, state, local or tribal programs, including energy financing and conservation grants. Scholarship and fellowship grants are not reported here. | See the recipient instructions printed on Form 1099-G; state and local grants are ordinarily taxable. |
| Box 7 | Agriculture payments: USDA agricultural subsidy payments, including market facilitation program payments. | See the recipient instructions printed on Form 1099-G. |
| Box 8 | Trade or business income checkbox: An X if the box 2 refund relates to an income tax that applies exclusively to a trade or business. | See Rev. Rul. 86-140, cited in the payer instructions. |
| Box 9 | Market gain: Market gain on repayment of a Commodity Credit Corporation loan. | See the recipient instructions printed on Form 1099-G. |
| Box 10 | Family leave benefits: Payments under a governmental paid family and medical leave program, before withholding, when the total meets the reporting threshold. | See the recipient instructions printed on Form 1099-G. |
| Boxes 11a-12 | State information: State, state ID number and state income tax withheld. For the payer’s convenience; not required for the IRS. | Use for your state return. |
Box 1 versus box 2
Unemployment (box 1) is income when it is paid. A state tax refund (box 2) is different. The Form 1040 instructions say none of a refund is taxable if in the year you paid the tax you either did not itemize deductions or elected to deduct state and local sales taxes instead of income taxes. If you did itemize, use the State and Local Income Tax Refund Worksheet to see how much is taxable. If you did not get a 1099-G, the agency that paid you can tell you, and you may need to retrieve an electronic copy.
Worked example
Alex collected $9,000 in unemployment, shown in box 1, with $900 federal tax withheld in box 4. He reports $9,000 on Schedule 1 line 7 and the $900 in the line 25b total. If he repaid $1,000 of an overpayment during the year, the 1040 instructions say to subtract the repayment, enter the result on line 7, and check the box with the repaid amount.
Wrong or missing box 1
The Form 1040 instructions say that if the box 1 amount on your 1099-G is incorrect, report only the unemployment compensation actually paid to you. States may issue a 1099-G electronically, so check the state unemployment website. The 1099-G instructions note that states have seen a surge in fraudulent unemployment claims built on identity theft, and point to the Labor Department page for reporting it.
More form decoders
Estimate benefits with the state unemployment benefit estimator. For other forms see the 1099-R box 7 lookup.
Sources
- Instructions for Form 1099-G: Specific Instructions: boxes 1 to 12, and the Caution on fraudulent unemployment claims. Read November 2, 2026.
- Instructions for Form 1040 (2025): Unemployment Compensation; Taxable Refunds, Credits, or Offsets of State and Local Income Taxes; Line 25b; Line 8z. Read November 2, 2026.
IRS pages last reviewed April 30 and May 6, 2026. Line numbers are those printed in the 2025 instructions and can change.
Frequently asked questions
Where do I report 1099-G box 1?
Report the unemployment compensation in box 1 on Schedule 1 (Form 1040), line 7. If the figure is wrong, report only what was actually paid to you.
Is a state tax refund in box 2 taxable?
Only if you deducted that tax on Schedule A in the year you paid it. None is taxable if you did not itemize or elected the state and local sales tax deduction.
Can I have federal tax withheld from unemployment?
Yes. Voluntary federal withholding on unemployment compensation is reported in box 4. Backup withholding on boxes 5, 6 and 7 is at 24%.
What is box 10 on a 1099-G?
Family leave benefits paid under a governmental paid family and medical leave program, before income tax was withheld.
What if I got a 1099-G for unemployment I never received?
Report only the amount actually paid to you on your return. The 1099-G instructions note states have seen a surge in fraudulent unemployment claims built on identity theft, and point to the Labor Department page for reporting it.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. The payer, a CPA or an enrolled agent can confirm what a box or code means for your return. Everything runs in your browser; nothing you enter is sent anywhere.