Tax season hits differently in Illinois. You're sitting there, scrolling through your email or checking the mailbox, and suddenly there it is: a 1099 g state of illinois form. Most people see the official letterhead and immediately think they owe the government more money. Or, worse, they see an amount for unemployment benefits they never actually touched.
Honestly, it’s a mess sometimes. But here is the thing. That form isn't a bill. It's an information statement. Basically, the State of Illinois is telling the IRS (and you) that they paid you money last year that might be taxable. Whether that was for unemployment insurance or a state tax refund from the previous year, you’ve got to handle it correctly or the Department of Revenue will be knocking on your digital door.
Why did you even get a 1099 g state of illinois anyway?
There are two big reasons this form shows up in your life.
First, the Illinois Department of Employment Security (IDES) sends it if you collected unemployment. If you were between jobs in 2025 and took those weekly payments to keep the lights on, that money counts as income. Uncle Sam wants his cut. Illinois doesn't actually tax its own unemployment benefits—which is a nice little break—but the federal government definitely does.
The second reason is a bit more "meta." If you got an Illinois state tax refund in 2025 for your 2024 taxes, the Illinois Department of Revenue (IDOR) might send you a 1099-G.
Wait. Why would they tax a refund?
It only matters if you itemized your deductions on your federal return last year. If you took the standard deduction like most of us, this form is basically just for your records and won't change what you owe. But if you itemized and deducted your state taxes, that refund is considered "recovered" income.
The Identity Theft Nightmare
Let’s talk about the elephant in the room. What if you never filed for unemployment, but you still got a 1099-G from IDES?
This happened to thousands of people recently. Scammers use stolen Social Security numbers to file fake claims, and the first time the victim hears about it is when this tax form arrives.
Do not ignore this. If the amount in Box 1 is for money you never saw, you are looking at potential identity theft. You shouldn't report that fake income on your taxes, but you can't just throw the form away either. You have to report the fraud to IDES immediately so they can issue a corrected form and flag your account.
How to get your hands on the form
Gone are the days when you had to wait for the mailman. Most people in 2026 are grabbing their documents online.
- For Unemployment: Head over to the IDES website. You’ll need your ILogin credentials. If you haven't set that up yet, do it now. It's a bit of a hurdle with the multi-factor authentication, but it’s the only way to get your digital 1099-G.
- For Tax Refunds: This one is handled through MyTax Illinois. It’s a separate portal from the unemployment one.
- The Phone Option: If you’re tech-averse or the website is acting up (which, let's be real, happens), you can call Tele-Serve at (312) 338-4337. Just be prepared for some hold music.
Breaking down the boxes
The form looks like a wall of numbers, but only a few spots really matter for your 1099 g state of illinois filing.
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Box 1 is where the unemployment compensation lives. This is the big number the IRS cares about.
Box 2 shows your state tax refund. Again, only a worry if you itemized last year.
Box 4 is the hero box. It shows how much federal tax was already withheld. If you were smart and told IDES to take out 10% for taxes before they sent you your weekly benefits, that total will be here. It counts as a credit toward your tax bill, so you aren't paying twice.
Box 11 is for any state tax withheld. Since Illinois doesn't tax unemployment, this is usually blank unless there’s a specific correction or a different type of payment involved.
Common mistakes to avoid
People mess this up constantly.
Some folks try to "double dip" by reporting the 1099-G as income on their Illinois state return. Don't do that. Illinois law generally lets you subtract that unemployment income from your adjusted gross income on your IL-1040. If you report it as taxable income to the state, you are literally giving the government money they said you didn't have to pay.
Another mistake? Forgetting the 1099-G because it "wasn't a real job." The IRS gets a copy of every single 1099 g state of illinois issued. If you leave it off your return, their computers will flag it within months. You’ll get a letter called a CP2000, and it will include interest and penalties. It’s way cheaper to just file it right the first time.
What if the math is just wrong?
Sometimes the state says they paid you $5,000, but your bank account says $4,200. Check to see if they deducted an overpayment from a previous year or if there was a child support offset. The 1099-G reports the gross amount—what you were entitled to before they took anything out for debts or taxes.
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If the number is still legitimately wrong, don't just change it on your tax return. You have to get the state to fix it. Filing a return that doesn't match the 1099-G is a fast track to an audit.
Steps you should take right now
- Log into ILogin: Check your 1099-G status today. Don't wait until April 14th when the server is inevitably under heavy load.
- Compare your records: Cross-reference Box 1 with your 2025 bank deposits.
- Report fraud early: If you see a form you shouldn't have, hit the IDES "Report Fraud" link immediately.
- Talk to your tax person: Mention if you itemized in 2024. This decides if Box 2 matters for your 2025 filing.
- Download the PDF: Save a copy to your computer. Don't rely on the state portal being available forever.
Handling your 1099 g state of illinois doesn't have to be a headache. It's mostly just about knowing which portal to log into and making sure the numbers match your reality. If you stayed on top of your paperwork during the year, this is just another form to click through.
If you're still feeling stuck, the Illinois Department of Revenue has a decent FAQ section, though it’s written in "government-speak." Most tax software handles 1099-G inputs pretty smoothly these days, so as long as you have the form in front of you, the heavy lifting is mostly done.