What is Form 1099-G?
Form 1099-G, Certain Government Payments, is an Internal Revenue Service (IRS) form that is used to declare unemployment compensation, as well as any state or local income tax refunds a person received that year.
The IRS 1099-G Form is sent to taxpayers (hereby called the Receivers) if a federal, state, or local government agency made certain kinds of payments to them. In addition to the more common payments such as unemployment compensation and state or local income tax refunds, the IRS Form 1099-G must also be filed if payments were received on a Commodity Credit Corporation (CCC) loan.
Certain amounts that are not reportable on Form 1099-G, such as compensation for services, prizes, and certain incentives, may be reportable on Form 1099-MISC, Miscellaneous Information, or Form 1099-NEC, Nonemployee Compensation. See the Instructions for Forms 1099-MISC and 1099-NEC for more information.
There are multiple copies of the 1099 G form that must be filled out. The same instructions as written below apply to all copies of the form - however, different copies will be required for different purposes. You can see the “version” or “copy title” of the form on the right side of the form.
Copy A, which is to be submitted alongside Form 1096 to the IRS. It is important, however, to remember that unlike all other copies of this form, Copy A cannot be downloaded or scanned and submitted to the IRS. There are particular instructions for how to submit this copy, which can be found in the General Instructions for Certain Information Returns on the IRS website.
Copy 1 is for the state tax department.
Copy B is for the recipient.
Copy 2 is to be filed alongside the recipient’s state income tax return.
Copy C is for the payer.
Who needs to use Form 1099-G?
Form 1099-G is filed by federal, state, and local government agencies for payments made to taxpayers. The officer or employee of the government unit having control of the payments, received or made, (or the designated officer or employee), also called the Payer, must file Form 1099-G IRS. The appropriate copy of the filled-out form should then be sent to the proper places and people.
The form must be filed to document payments made for the purposes of:
- Income tax refunds, credits, or offsets at the state and local levels
- Reemployment trade adjustment assistance (RTAA)
- Taxable grants
- Agricultural payment
How to fill out Form 1099-G?
Form 1099-G is a very short and simple form to fill out. Download this document in PDF format so that it maintains its format and structure even when printed or opened with different applications. It will be beneficial to have the appropriate documents prepared that have information on the payment(s) that Form 1099-G is being filed for to ensure that all information entered on the form is correct and updated.
Enter the full legal name of the payer.
Enter the following details about the payer’s address:
- City or Town
- State or Province
- ZIP or Foreign Postal Code
Then enter their primary telephone number.
Enter the payer’s Taxpayer Identification Number (TIN).
Enter the recipient’s TIN.
Enter the recipient’s full legal name.
Recipient’s Street Address
Enter the recipient’s street address, including their apartment number if applicable.
City or Town, State or Province, Country, and ZIP or Foreign Postal Code
Enter the recipient’s city or town, state or province, country, and ZIP or Foreign Postal Code.
If there are multiple accounts for a recipient, and thus more than one copy of Form 1099-G that must be filed, enter one of the account numbers here, and remember to file another Form 1099-G for each other account number. The IRS also encourages you to designate an account number for all Forms 1099-G that will be filed, so it may be beneficial to assign an account number for this form even if you only need to file one Form 1099-G.
2nd TIN Number
If you have been notified by the IRS twice within the last three calendar years that the recipient provided an incorrect TIN, mark the box provided. By doing so, the IRS will stop sending you notices about the particular account listed in Account Number.
If you received both IRS notices in the same year or if you received them in different years but they both related to information returns filed for the same year, do not check the box at this time. For purposes of the two-notices-in-3-years rule, you are considered to have received one notice and you are not required to send a second “B” notice to the taxpayer on receipt of the second notice. Check the General Instructions for Certain Information Returns on the IRS website for more details.
Box 1 - Unemployment Compensation
Enter the total amount of unemployment compensation paid to the receiver.
Box 2 - State or Local Income Tax Refunds, Credits, or Offsets
Enter the total amount of state or local income tax refunds, credits, or offsets paid to the receiver.
Box 3 - Box 2 Amount for Tax Year
Confirm here if the amount on Box 2 is the amount paid for this tax year.
Box 4 - Federal Income Tax Withheld
Enter the total amount of federal income tax withheld.
Box 5 - Reemployment Trade Adjustment Assistance Payments
Enter the total of all Reemployment Trade Adjustment Assistance (RTAA) payments made.
Box 6 - Taxable Grants
Enter the total amount of taxable grants administered by a federal, state, or local program to provide subsidized energy financing or grants for projects designed to conserve or produce energy, but only with respect to energy property or a dwelling unit located in the United States. Also, include in the total the amount of any taxable grant administered by an Indian (Native American) tribal government.
Box 7 - Agriculture Payments
Enter the total amount of United States Department of Agriculture (USDA) payments made during the year, if any.
Box 8 - Trade or Business Income
Check the box provided if Box 2 is trade or business income. Otherwise, leave it blank.
Box 9 - Market Gain
Report the total of any market gain associated with the repayment of CCC loans whether repaid using cash or CCC certificates.
Box 10a - State
Enter in both rows a state where a particular amount of income tax was withheld.
Box 10b - State Identification Number
Enter the associated state identification number (the form filer’s identification number assigned by the corresponding state).
Box 11 - State Income Tax Withheld
Enter the amount of state income tax withheld for each state listed.
Tips when filling out Form 1099-G
Form 1099-G contains personal information such as the transferor and filer’s address and TIN, as well as important information on taxes and transactions they have conducted. Thus, it is important to keep this form safe and to ensure that it is submitted through organized and trustworthy means to the correct places and people in order to avoid any issues such as identity theft or tax fraud.
Make sure all information entered is correct, and that the form is submitted to the appropriate place on time. This will help avoid any consequences for giving the IRS the wrong information and ensure that your tax returns will be processed properly.
Make sure to fill out every copy of the form, and keep in mind where each copy should be used. This is important as each copy of the form is for use in different situations. Make sure that you are using the proper copy for the proper purpose to avoid any legal or tax issues.
Practice good contract management. Make sure to keep your copy of the form in a safe and organized area, or even copy it again in order to be doubly sure that you have a backup in case the original is damaged in some way. This will be useful for possible legal purposes in the future, or even simply as a record.