There are many reasons you could have received a notice regarding your Form(s) 1099-G. The most common reasons are listed below:
  • The form was never entered into the TaxACT program and the income was not reported elsewhere on the return.
  • Entry error:
    • Example of a transposed number: The number that should have been entered was $21,123; instead the user entered $12,123. This would have caused a difference of $9,000 in underreported taxable income. 
    • Example of an omitted number: The number that should have been entered was $21,123; instead the user entered $2,123. This would have caused a difference of $19,000 in underreported taxable income.
  • Unemployment Compensation (Box 1):
    • 2009 Tax Year Only: The IRS allowed taxpayers to reduce the taxable amount of unemployment compensation by $2,400. The user should have entered the total amount of unemployment compensation received, and then the TaxACT program automatically reduced that amount by $2,400. If you already reduced the amount before entering it into the TaxACT program, then $2,400 was deducted twice from the total unemployment compensation. Please review the amount on Form 1040, Line 19 in conjunction with the amount reported to you on Form 1099-G.
    • The form was entered into the TaxACT return, but the user also entered an amount in the field "Current Year's Unemployment Repaid." This would have directly reduced the taxable amount of unemployment compensation appearing on Form 1040, Line 19.
  • Taxable Portion of Prior Year State Income Tax Refund (Box 2):
    • The form was entered into the TaxACT return, but indicated “Did Not Itemize Last Year.” This would have caused the TaxACT program to calculate a taxable Prior Year State Income Tax Refund of $0.00 on Form 1040, Line 10.
    • The form was entered into the TaxACT return; however, the prior year Schedule A information may have been entered inaccurately causing an incorrect taxable Prior Year State Income Tax Refund amount to calculate.
To review and/or modify your Unemployment Compensation entries for Form 1099-G Certain Government Payments:
  1. From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
  2. Click Other Income to expand the category and then click Unemployment compensation
  3. Click Add to create a new copy of the form or click Review to review a form already created 
  4. The program will proceed with the interview questions for you to enter or review the appropriate information
To review and/or modify your Prior Year State Income Tax Refund entries for Form 1099-G Certain Government Payments:
  1. From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
  2. Click State Income Tax Refund and then click Yes
  3. Click Add to create a new copy of the form and enter the information from your Form 1099-G or click Review to review a form already created (If you have not previously entered a Form 1099-G, the program will automatically proceed with the interview questions.)
  4. The program will proceed with the interview questions for you to enter or review the appropriate information.

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