IRS Form 1099-G for 2026: A Complete Guide

What is Form 1099-G?

Form 1099-G, Certain Government Payments, is an IRS information return that federal, state, and local government units file to report certain payments they made during the calendar year.

As the government payer, you are generally responsible for filing Form 1099-G with the IRS and furnishing a copy to the recipient, subject to the specific exception for certain Box 2 refunds.

Form 1099-G reports these payments:

Some government payments do not belong on Form 1099-G. Compensation for services, prizes, and certain incentives may be reportable on Form 1099-MISC or Form 1099-MISC instead. Scholarship and fellowship grants are not reported on Form 1099-G.

Who must file Form 1099-G?

You must file Form 1099-G if you are a unit of a federal, state, or local government and you made any of the reportable payments above. Common filers include:

• State unemployment agencies and the Railroad Retirement Board
• State and local tax departments issuing income tax refunds, credits, or offsets
• State paid family and medical leave programs
• Agencies administering RTAA payments or taxable grant programs
• The U.S. Department of Agriculture and the Commodity Credit Corporation
• Indian tribal governments administering taxable grants

Nominees also have a filing duty. If you received USDA subsidy payments on behalf of another person, file Form 1099-G to report the actual owner of the payments.

You must also file Form 1099-G for any recipient you backup withheld federal income tax from, regardless of the payment amount.

What are the Form 1099-G reporting thresholds for 2026?

The threshold depends on the payment type.

For 2026, the reporting threshold for RTAA payments, most taxable grants, and governmental paid family leave benefits is $2,000 or more. The $10 thresholds for unemployment compensation and state or local income tax refunds, credits, or offsets remain unchanged.

What’s new on Form 1099-G for the 2026 tax year?

The IRS issued a December 2026 continuous-use revision of Form 1099-G with a new box for family leave benefits, renumbered state boxes, and separated address fields.

• New Box 10, Family leave benefits

  Rev. Rul. 2025-4 requires states to file Form 1099 with the IRS and furnish a copy to the recipient for family leave benefits paid by state paid family and medical leave programs. Enter the total amount before any income tax withheld. If you withheld federal income tax at the recipient's request, report it in Box 4.

• State boxes are renumbered

  Field	Previous box	2026 box
  State	10a	11a
  State identification no.	10b	11b
  State income tax withheld	11	12

The FIRE e-file system retires December 31, 2026, and IRIS becomes the required filing system afterward. See how TaxBandits helps with the IRIS transition

What are the copies of Form 1099-G?

For Box 2 refunds, you are not required to furnish a recipient copy if you can determine the recipient did not itemize deductions for the year that gave rise to the refund. You must still file with the IRS in every case. The exception does not apply to refunds of a tax on unincorporated business income, which always require a recipient copy.

What information is required for Form 1099-G?

• Payer’s name, TIN, address, and telephone number
• Recipient’s name, TIN, and address
• Account number, required if you file more than one Form 1099-G for the same recipient
• Unemployment compensation, before any withholding (Box 1)
• State or local income tax refunds, credits, or offsets (Box 2) and the tax year they relate to, if not the current year (Box 3)
• Federal income tax withheld, including backup and voluntary withholding (Box 4)
• RTAA payments, taxable grants, and agricultural payments (Boxes 5 to 7)
• Trade or business income checkbox, if the Box 2 refund relates to a tax on business income only (Box 8)
• Market gain on CCC loan repayment (Box 9)
• Family leave benefits (Box 10)
• State, state identification number, and state income tax withheld (Boxes 11a, 11b, and 12)

Learn more about box-by-box entries in our Form 1099-G Instructions guide.

When is the deadline for Form 1099-G?

For the 2026 tax year (filed in 2027):

Can I get an extension for Form 1099-G?

Yes. Unlike Form 1099-NEC and Form W-2, Form 1099-G qualifies for an automatic 30-day extension.

File Form 8809 electronically or by paper on or before the original due date to receive it. A separate request, Form 15397, can be filed if you need more time to furnish recipient copies.

Are there penalties for late filing of Form 1099-G?

Annual maximum caps also apply. Confirm how they apply to government payers against Pub. 1099, part O, before publishing. See our 1099-G Penalty guide for a detailed breakdown.

Form 1099-G vs. other 1099 forms

If your agency pays interest on a refund, the refund goes on Form 1099-G, and the interest goes on Form 1099-INT.

Common Form 1099-G filing mistakes to avoid

• Using the old state box numbers. For 2026, state data moves to Boxes 11a, 11b, and 12. Box 10 now holds family leave benefits.
• Reporting net unemployment. Box 1 must show the total amount before any income tax was withheld.
• Combining tax years in Box 2. Refunds, credits, or offsets for more than one tax year go on separate forms, with the year entered in Box 3 in YYYY format.
• Putting grants in Box 2. State grant, incentive, or subsidy payments that are not income tax refunds belong in Box 6, not Box 2.
• Skipping the IRS filing for non-itemizers. The recipient copy exception for Box 2 does not remove the IRS filing requirement.
• Voluntary withholding on RTAA. Voluntary federal withholding is not permitted on RTAA payments.
• Separate contributory programs on one form. Payments from each contributory program treated as unemployment compensation need their own Form 1099-G.
• Leaving address fields unmapped for 2026. With address blocks now split into individual fields, a data import built for the old single-line format may fail validation.

How to file Form 1099-G for the 2026 tax year

You can file Form 1099-G electronically or on paper, though the IRS strongly recommends e-filing. If you file 10 or more information returns in total, you are required to e-file.

To e-file with TaxBandits:

• Step 1: Create a free account.
• Step 2: Select or add the agency or organization you're filing for.
• Step 3: Enter the required Form 1099-G details, including the new Box 10 and renumbered state boxes.
• Step 4: Review and transmit your return to the IRS and applicable states.

E-File Form 1099-G Now, starting as low as $0.80/form.

Frequently asked questions

If your recipient has questions about their 1099-G

Recipients often contact the agency once their copy arrives, especially first-time unemployment claimants. Clear answers reduce correction requests and support calls during filing season.