Form 1099-G Instructions for 2025

What Is Form 1099-G?

Form 1099-G refers to certain government payments. Certain federal, state, and local payments that are made to taxpayers must be reported to the IRS using Form 1099-G. Government entities must also distribute copies to these taxpayers, as they need this information for their own personal income tax returns.

What are the changes to Form 1099-G for the 2025 tax year?

The IRS has made several important updates to Form 1099-G for the 2025 tax year to support new reporting requirements and enhance form accuracy. Here’s what you need to know:

• New Box for Family Leave Benefits: A new Box 10 for family leave benefits has been added to report payments made under state-paid family and medical leave programs, as required by Rev.Rul.2025-4.
• Renumbered State Information Boxes: Due to the new box, the previous Boxes 10a, 10b, and 11 have been renumbered to 11a, 11b, and 12, respectively.
• Updated Address Fields: The payer’s and recipient’s address fields are now divided into separate entry boxes for each part of the address (street, city, state, and ZIP code) to make data entry clearer and more accurate.

What are the Line by Line instructions to complete your Form 1099-G?

In Form 1099-G, before entering the payment details, provide the basic payer and recipient information at the top of the form. This includes the payer’s name, address, TIN, and the recipient’s name, address, and TIN. If applicable, include the account number and check the box for the 2nd TIN notice.

Now, let’s go through the Form 1099-G boxes line by line:

• Box 1: Enter unemployment compensation payments of $10 or more.
• Box 2: Report state or local income tax refunds, credits, or offsets of $10 or more.
• Box 3: Specify the tax year the amount in Box 2 applies to (use four digits, e.g., 2025). Leave blank if it applies to the current year.
• Box 4: Enter any federal income tax withheld, including backup withholding.
• Box 5: Report RTAA (Reemployment Trade Adjustment Assistance) payments, if applicable.
• Box 6: Enter the amount of taxable grants.
• Box 7: Report any agriculture payments made to the recipient.
• Box 8: Check this box if the amount in Box 2 represents income from a trade or business.
• Box 9: Enter any market gain associated with the Commodity Credit Corporation (CCC) loan.
• Box 10: Report family leave benefits, if any.
• Boxes 11a–12: Enter state information, including the state name or abbreviation, state identification number, and the amount of state income tax withheld.

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What are the Advantages of E-Filing Form 1099-G with TaxBandits?

E-filing with TaxBandits has many benefits! Our e-filing process is easy and convenient. The IRS business rules are built-in to help you avoid many common errors that could result in an IRS rejection. In addition to state and federal e-filing, TaxBandits offers solutions for your recipient copies. You can mail copies to your recipients and/or grant them access to view and download their forms online.

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How to file Form 1099- G With TaxBandits?

With TaxBandits, e-filing Form 1099-G is simple and accurate, just follow the steps below to get started

• Create an account with TaxBandits.
• Select or add the business you are filing for.
• Enter the required Form 1099-G details.
• Review and transmit Form 1099-G to the IRS.

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