Unemployment compensation received in 2025 is taxable and must be reported on your 2025 tax return, even if you did not receive a Form 1099-G. According to the IRS instructions for Schedule 1 (Form 1040), you should report the full amount of unemployment compensation you received during the year on Line 7 of Schedule 1. This applies whether or not you received a Form 1099-G from your state unemployment office.
If you made contributions to a governmental unemployment compensation program and are not itemizing deductions, you may reduce the amount reported on Line 7 by those contributions. If you are itemizing, refer to the instructions on Form 1099-G for how to claim those contributions as part of your state and local tax deductions.
If you repaid any overpayment of unemployment compensation during 2025, subtract the repaid amount from the total received and report the net amount on Line 7. Also, check the box on Line 7 and enter the amount repaid in the designated space. If you repaid more than $3,000 of unemployment compensation previously included in income, consult Publication 525 for guidance on reporting those repayments.
Some states may issue electronic Form 1099-Gs instead of mailing them. Check your state’s unemployment website for access to your records.
Source:
Form 1040 Instructions (2025)
Disclaimer: Always verify details with the current IRS Form 1040, Schedule 1, and related publications, as well as your state’s Department of Revenue guidelines. For complex situations, consult a tax professional or CPA.