Received a 1099-G form for tax year 2023 - not sure what it means or what to do with it

This actually happens more often than you might think. A 1099-G is typically issued for state tax refunds, unemployment compensation, or certain government payments. Since you mention you never received unemployment, there are two likely possibilities: either it's reporting a state tax refund you received for 2023 (which you may need to report as income if you itemized deductions the previous year), or there might be an error where unemployment benefits were paid out in your name fraudulently. I'd recommend first checking the issuing agency (should be listed on the form) and contacting them directly. If it's showing unemployment benefits you never received, you should report this immediately as it could be identity theft. The agency can issue a corrected form stating you received $0. Don't ignore it though - addressing this promptly is important so you don't end up having to pay taxes on money you never received.

I went through something similar last year and found taxr.ai was super helpful with this exact problem. I got a random 1099-G I didn't understand, uploaded it to https://taxr.ai and their system instantly told me it was for a state tax refund from the previous year. The tool explained that since I took the standard deduction, I didn't need to report it as income (which saved me from overpaying my taxes). Their document analysis breaks down exactly what each box on the form means and tells you exactly how to handle it on your tax return. If it is showing unemployment you never received, they also guide you through the identity theft reporting process with step-by-step instructions.

Just wanted to follow up about taxr.ai - I tried it with my stack of forms including a similar 1099-G situation. The tool immediately identified that my 1099-G was reporting unemployment benefits I never applied for! It walked me through exactly who to contact and what to say to report the fraud and get a corrected form issued. Saved me from accidentally reporting $4,300 of income that wasn't mine and helped me protect my identity. Definitely worth checking out if you're not sure what your form means.

If you determine it's identity theft (which sounds likely if you never got unemployment), you'll need to contact the IRS too. I spent 3 WEEKS trying to get through to someone at the IRS about this same issue last year. Finally found https://claimyr.com and used their service - they hold your place in the IRS phone queue and call you when an agent is about to answer. Check out how it works: https://youtu.be/_kiP6q8DX5c Talking directly with an IRS agent was necessary to get everything straightened out. They flagged my account for identity protection and helped me make sure I wouldn't be liable for taxes on benefits I never received. Much better than waiting for a letter response that might take months.

Ok I need to apologize about my skepticism. After seeing more 1099-G forms showing up that weren't mine, I was desperate and tried Claimyr. Got connected to an IRS agent in about 45 minutes (without doing anything but waiting for their call). The agent confirmed it was fraud, put additional security on my account, and even initiated a trace on who had been filing for benefits using my info. They also sent me documentation I could provide to the state unemployment office as proof. I'm really glad I didn't ignore the form or try to handle it alone.

Make sure to also check your credit reports! If someone has enough of your info to file for unemployment in your name, they might have opened other accounts too. You can get free weekly credit reports from all three bureaus at annualcreditreport.com and should put a fraud alert on your account.

When calling the agency on the 1099-G, ask them specifically about the "payer" section. Sometimes states issue these for things besides unemployment - like lottery winnings, state incentives, or special programs. My mom got one for a state energy rebate program she participated in and was freaking out thinking it was fraud.

Just to add another perspective - before jumping to identity theft conclusions, double-check if you received any state-level benefits or refunds in 2023 that you might have forgotten about. I got a 1099-G last year that turned out to be for a property tax rebate my state issued to homeowners. The key is looking at Box 1 (which shows the amount) and Box 2 (which shows any federal taxes withheld). If there's an amount in Box 1 but you're certain you never received that money, then yes, it's likely fraudulent unemployment benefits filed in your name. Also worth noting - if this IS unemployment fraud, don't wait to address it. The fraudsters often file tax returns quickly to claim refunds on the stolen benefits, which can complicate your own tax filing if the IRS already has a return on file for you.