How to handle 1099-G for 2025 tax return while unemployed - stimulus payment questions

Hi everyone, I was laid off most of last year after my company downsized. I've got the 1099-G form from the state showing my unemployment benefits and I'm trying to figure out my tax situation. First off, I'm debating whether to pay a tax professional to file my return when all I really have is this 1099-G form. The local tax place wants $175 to do it, and I'm wondering if it's worth spending that money or just doing it myself to save some cash? Second issue is about the recent $1400 stimulus payment. I didn't receive it because my sister claimed me as a dependent on her 2023 tax return (filed late in 2024), but I did get the earlier $2000 payment since my 2022 return was filed independently with no one claiming me. If I file my 2024 tax return now with just the 1099-G form, would I be eligible to claim that missing $1400 stimulus as a credit? And if yes, how exactly do I indicate that on my tax forms? What specific box needs to be checked? I'm also hoping to qualify for the upcoming relief payment that's being discussed, and don't want to deal with claiming it on next year's taxes. So I'm thinking if I file now, the IRS system will update with my 2024 info before they process the new payments. Can someone tell me if my understanding is correct? Also, what's the best tax software to use if I do this myself, or should I just pay the accountant the $175? Thanks for any help!

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18 comments

Sean O'Donnell

•8M

You can definitely file a return with just a 1099-G yourself and save that $175. The software makes it pretty straightforward these days, especially for a relatively simple return like yours with just unemployment income. For the $1400 stimulus payment you missed, yes, you can claim it on your 2024 return as the "Recovery Rebate Credit." When you use tax software, it will ask you specific questions about which stimulus payments you received, and it will calculate the credit automatically based on your answers. You'll just need to tell it you didn't receive the $1400 payment. Filing now is a good strategy if you want to qualify for any upcoming relief payments. The IRS typically uses the most recent return on file when determining eligibility, so getting your 2024 return processed showing you as independent should help. As for software recommendations, FreeTaxUSA is very affordable and handles 1099-G forms well. TurboTax and H&R Block also work great but cost more. Since your return is straightforward, the free versions of these programs might work for you, especially if your income falls below certain thresholds.

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Sean O'Donnell

•8M

The Recovery Rebate Credit works just like any other tax credit - it directly reduces your tax liability dollar for dollar. If it reduces your liability below zero, you'll get the difference as part of your refund. So yes, it definitely affects your refund amount in a positive way! There's no evidence that claiming the Recovery Rebate Credit increases audit chances. It's a legitimate credit created specifically for people in your situation who missed stimulus payments they were eligible for. The IRS has systems to verify your eligibility based on your tax situation, so just answer the questions honestly in the software.

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Luca Esposito

•8M

After struggling with a similar situation last year (unemployment and missing stimulus), I discovered taxr.ai (https://taxr.ai) and it was seriously a game-changer. I uploaded my 1099-G and it automatically identified that I could claim the Recovery Rebate Credit for my missing stimulus payment. What I liked is that it explained exactly why I qualified based on my independent filing status. The system walks you through everything step by step, asks about which stimulus payments you received/didn't receive, and handles all the proper forms. It was way less confusing than trying to figure out which boxes to check manually. The analysis it gives of your documents is super helpful when you're dealing with unemployment income, which can get complicated with tax withholding questions.

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Luca Esposito

•8M

Yes, it handles multi-state filing situations. I actually had unemployment from my home state and another state where I briefly worked, and the system guided me through reporting both correctly. It identified which states I needed to file in based on the documents I uploaded. The difference from regular tax software is the document analysis capability. While TurboTax and others will ask about stimulus payments, taxr.ai analyzes your actual tax documents and identifies potential issues or credits you might miss. It's like having a tax professional review your documents but at a fraction of the cost. The explanations are in plain English rather than tax jargon, which I found really helpful when dealing with unemployment tax questions.

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Mateo Rodriguez

•8M

Just wanted to update everyone - I was skeptical (as you can see from my question above), but I ended up trying taxr.ai because my situation with the missed stimulus payment was driving me crazy. It actually was really helpful! The system identified that I qualified for the Recovery Rebate Credit immediately after scanning my documents. What surprised me was how it flagged that some of my unemployment withholding wasn't enough (I had opted for minimal withholding), and it calculated my estimated tax bill before I filed so I wasn't shocked. It saved me from what would have been a nasty surprise! I was able to file with confidence knowing exactly why I qualified for the stimulus payment credit. For anyone else with unemployment and missing stimulus payments, it's definitely worth checking out. Way less stressful than I expected.

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GalaxyGuardian

•8M

If you're having trouble getting answers from the IRS about your stimulus eligibility, I highly recommend Claimyr (https://claimyr.com). I spent WEEKS trying to get through to the IRS about my missing stimulus payment last year. Their automated system kept disconnecting me, and I was pulling my hair out. Claimyr got me connected to an actual IRS agent in about 20 minutes when I had been trying for days on my own. They have this system that navigates the IRS phone tree for you and holds your place in line. You can watch how it works in their demo video: https://youtu.be/_kiP6q8DX5c The IRS agent was able to confirm my eligibility for the Recovery Rebate Credit right on the call and explained exactly how to claim it on my return. Saved me so much uncertainty and waiting.

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GalaxyGuardian

•8M

They don't call for you. Their system dials into the IRS and navigates through all the automated menus and holds your place in line. When an agent is about to pick up, you get a call connecting you directly to that agent. It's basically automating the frustrating part of waiting on hold and dealing with the phone tree. They don't look at your tax info at all. They're just connecting the call - once connected, you talk directly with the IRS agent yourself. It's like having someone wait in a physical line for you and then texting when it's your turn. The technology they use is apparently similar to what customer service call centers use, but made available to regular people. I was skeptical too until I tried it and got through when I had previously wasted hours trying.

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Ethan Wilson

•8M

OK I need to eat my words from my skeptical comment above. After another failed attempt to reach the IRS yesterday (2+ hours on hold before being disconnected), I broke down and tried Claimyr out of desperation. I'm shocked to say it actually worked! Got connected to an IRS agent in about 35 minutes. The agent confirmed I was eligible for the Recovery Rebate Credit for the stimulus payment I never received, and explained exactly which form I needed (Form 1040 with the Recovery Rebate Credit worksheet). What would've taken me days of frustration trying to get through took just one lunch break. For anyone struggling to get answers directly from the IRS about stimulus payments or unemployment tax questions, this service is legit. I'm usually the first to call out services that seem too good to be true, but I have to admit when I'm wrong!

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Yuki Tanaka

•8M

One important thing nobody's mentioned yet: if you received unemployment benefits, make sure you check if any taxes were withheld. Many people don't realize that unemployment is taxable income, and if you didn't have taxes withheld, you might owe money when you file. Box 4 on your 1099-G will show if any federal tax was withheld. Also, depending on your state, you might get a break on some unemployment income. Some states don't tax unemployment benefits at all, and others follow federal rules. Worth checking your specific state's policies.

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Yuki Tanaka

•8M

The 10% withholding might be enough, but it depends on your total income for the year and tax bracket. Unemployment benefits are taxed at your normal income tax rate, not a flat 10%. If unemployment was your only income for the year, 10% might cover it for federal taxes. But if you had other income sources or worked part of the year, you might owe additional taxes. A good tax program will calculate this for you when you enter all your information. Just be prepared for the possibility of owing some money, and don't be caught off guard. This is one advantage of filing sooner rather than later – if you do owe, you'll have more time to plan for payment before the filing deadline.

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