Form 1099-G - Errors That Could Prompt a Notice
1

There are many reasons you could have received a notice regarding your Form 1099-G Certain Government Payments. 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):
    • The form was entered into the TaxAct return, but the user also entered an amount in the Current Year's Unemployment Repaid field. This would have directly reduced the taxable amount of unemployment compensation appearing on Schedule 1 (Form 1040) Additional Income and Adjustments to Income, Line 7.
  • State or local income tax refunds, credits, or offsets (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 U.S. Individual Income Tax Return, Line 10.
    • The form was entered into the TaxAct return; however, the prior year Schedule A (Form 1040) Itemized Deductions 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:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Other Income in the Federal Quick Q&A Topics menu to expand, then click Unemployment compensation.
  3. Click + Add Form 1099-G Unemployment to create a new copy of the form or click Edit to review a form already created.
  4. Continue with the interview process to enter all of the appropriate information.

To review and/or modify your Prior Year State Income Tax Refund entries for Form 1099-G:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click State Income Tax Refund in the Federal Quick Q&A Topics menu.
  3. Click + Add Form 1099-G State Refund Document to create a new copy of the form or click Edit to review a form already created.
  4. Continue with the interview process to enter all of the appropriate information.

Related Links

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.