Intake and Interview Process
To determine if the taxpayer received unemployment compensation, review the answer to the unemployment question on the intake and interview sheet, Part III, Income. Ask the taxpayer for any Form(s) 1099-G, Certain Government Payments, that document unemployment compensation payments from each government entity.
In most states, a taxpayer can elect to have federal income taxes withheld from unemployment compensation. Review box 4 of Form 1099-G for any federal income tax withheld.