Why are federal unemployment supplements included on my 1099-G? July 21, 2021 16:17 Updated All unemployment benefits, including any federal supplements, are taxable. Related articles What if my unemployment benefits were applied to a prior overpayment? Can I access my Form 1099-G from prior tax years on UInteract? What is included in my Form 1099-G from DES? What do I do if I believe my Form 1099-G is not correct? What is a Form 1099-G?