Form 1099-G

If the payer is not Colorado, the client may be a partial year resident unless they came after January 1st of this year.

Tax Slayer entry:

  • The forms used for data entry vary, depending on the reason for the payment.

Box 1:

Federal Section > Income > Unemployment Compensation (1099-G Box 1)

  • The amount will appear on Form 1040 line 19 – Unemployment compensation.
  • Determine if the taxpayer had insurance coverage during the unemployment period and who was covered, for ACA purposes.

Box 2:

Federal Section > Income > State and Local Refunds (1099-G Box 2)

  • If the client used sales tax as an itemized deduction or did not itemize last year, state tax refunds are not taxable. There is no entry required.
  • If state tax paid was used as an itemized deduction, some or all may be taxable:
    • Taxable only to the extent that the lesser amount of:
      1. The state withholding amount exceeded the sales tax amount.
      2. The itemized deduction exceeded the standard deduction.
    • The TaxSlayer Tax Refund worksheet only checks item 2.
    • Interest based on the amount of refund in this box may be shown in the blank box under box 8. If there is an amount indicated there, it should be entered as ordinary interest.

Box 3:

  • If a year is specified and is not the current year, it is  OUT OF SCOPE .

Box 5:

Federal Section > Income > Other Income > Other Income Not Reported Elsewhere

  • Reemployment Trade Adjustment Assistance (RTAA) payments are entered as Miscellaneous Income.

Box 6:

Federal Section > Income > Other Income > Other Compensation > Scholarships and Grants.

  • Taxable grants are entered as Miscellaneous Income