1099 Forms › Form 1099-G Unemployment Compensation Reporting for 2026

At a Glance
Unemployment compensation is reported in Box 1 of Form 1099-G and is generally taxable at the federal level. This includes state unemployment benefits, federal compensation, railroad unemployment, extended benefits, and pandemic unemployment programs. Recipients can request 10% federal tax withholding, which appears in Box 4. State tax treatment of unemployment benefits varies.

Form 1099-G and Unemployment Compensation

Unemployment compensation is reported on Form 1099-G, Box 1. State unemployment agencies must file this form for each person who received unemployment benefits during the year.

Is Unemployment Compensation Taxable?

Yes, unemployment compensation is generally taxable at the federal level. Recipients must report the amount shown in Box 1 as income on their federal tax return.

State tax treatment varies. Some states do not tax unemployment benefits, while others do.

What Counts as Unemployment Compensation?

Unemployment compensation reported on Form 1099-G includes:

  • State unemployment insurance benefits
  • Federal unemployment compensation (FUTA)
  • Railroad unemployment compensation
  • Extended benefits
  • Trade readjustment allowances
  • Pandemic Unemployment Assistance (PUA)
  • Federal Pandemic Unemployment Compensation (FPUC)

Tax Withholding on Unemployment

Recipients can request federal income tax withholding on their unemployment benefits. If withholding was elected, the amount withheld appears in Box 4 of Form 1099-G.

The standard withholding rate for unemployment compensation is 10% of the payment.

E-File Form 1099-G with BoomTax

E-file your Form 1099-G with the IRS using BoomTax. Our platform is designed for state unemployment agencies and government entities.

External Resources

Ken Ham
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Ken Ham
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