A form 1099-G, Certain Government Payments is an income statement issued by a government agency.
You may have a 1099-G if you had:
- Unemployment compensation;
- State or local tax refunds, credits, or offsets;
- Reemployment Trade Adjustment Assistance (RTAA) payments;
- Taxable grants; or
- Agricultural Payments
Frequently Asked Questions
We have to report certain payments we’ve made to you to the Internal Revenue Service (IRS) because these payments may be taxable.
We report any refund or overpayment credit on Form 1099-G.
We report any interest paid or credit to your on Form 1099-INT
If you itemize deductions on your federal income tax return, you may deduct state income taxes paid during the year. Most people deduct the amount of state income tax withheld as shown on Forms W-2 plus any Montana estimated tax payments made during the year.
Since this reduces your Federal Taxable Income, any state taxes you’ve deducted on your return which is later refunded is taxable income.
See the Federal Form 1040, U.S. Individual Income Tax Return instructions or Publication 525, Taxable and Nontaxable Income for more information.
When married taxpayers file separately on the same form and one spouse is entitled to a refund and the other spouse owes, the refund of one spouse is applied to the amount owed by the other spouse. This means the refund received is different than what is shown on the return.
When you receive your Form 1099-G the following year, it will show the amount of the refund as calculated on the return and not necessarily the amount you received.
The amount shown on your Form 1099-G should be reported on the current year return and used in any calculations, if applicable.
If your refund is applied as a credit, applied as a payment, or used as an offset, you must still claim an over payment on your federal return and we must report it as a refund to the IRS.