Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Income — Unemployment Compensation

Unemployment Compensation Defined

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. 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.

Income section of intake and interview sheet, Yes box is checked for Unemployment compensation (1099-G).