Instructions for Form 1099-G - Main Contents Future Developments What’s New Replacement of lead service lines. Reminders Online PDF fillable Copies 1, B, and 2. Continuous-use form and instructions. Specific Instructions Statements to Recipients Truncating recipient’s TIN on payee statements. Account Number 2nd TIN Not. Box 1. Unemployment Compensation Box 2. State or Local Income Tax Refunds, Credits, or Offsets Box 3. Box 2 Amount Is for Tax Year Box 4. Federal Income Tax Withheld Backup withholding. Voluntary withholding. Box 5. RTAA Payments Box 6. Taxable Grants Box 7. Agriculture Payments Box 8. Trade or Business Income (Checkbox) Box 9. Market Gain Boxes 10a Through 11. State Information Instructions for Form 1099-G (03/2024) Certain Government Payments Section references are to the Internal Revenue Code unless otherwise noted. Revised: 03/2024 Instructions for Form 1099-G - Main Contents Future Developments For the latest information about developments related to Form 1099-G and its instructions, such as legislation enacted after they were published, go to IRS.gov/Form1099G. What’s New Replacement of lead service lines. Announcement 2024-10 addresses the federal income tax treatment of certain lead service line replacement programs for residential property owners. The replacement of lead service lines under the programs described in the announcement does not result in income. Water systems and state governments are not required to file information returns or furnish payee statements with respect to the replacement of lead service lines under these programs. For more information, see Announcement 2024-10, 2024-11 I.R.B. 711. Reminders In addition to these specific instructions, you should also use the current General Instructions for Certain Information Returns. Those general instructions include information about the following topics. Who must file. When and where to file. Electronic reporting. Corrected and void returns. Statements to recipients. Taxpayer identification numbers (TINs). Backup withholding. Penalties. Other general topics. You can get the general instructions from General Instructions for Certain Information Returns at IRS.gov/1099GeneralInstructions or go to IRS.gov/Form1099G. Online PDF fillable Copies 1, B, and 2. To ease statement furnishing requirements, Copies 1, B, and 2 are fillable online in a PDF format available at IRS.gov/Form1099G. You can complete these copies online for furnishing statements to recipients and for retaining in your own files. Continuous-use form and instructions. Form 1099-G and these instructions have been converted from an annual revision to continuous use. Both the form and instructions will be updated as needed. For the most recent version, go to IRS.gov/Form1099G. Specific Instructions File Form 1099-G, Certain Government Payments, if, as a unit of a federal, state, or local government, you made payments of unemployment compensation; state or local income tax refunds, credits, or offsets; Reemployment Trade Adjustment Assistance (RTAA) payments; taxable grants; or agricultural payments. You must also file this form if you received payments on a Commodity Credit Corporation (CCC) loan. The officer or employee of the government unit having control of the payments, received or made, (or the designated officer or employee) must file Form 1099-G. You must also file Form 1099-G for each person from whom you have withheld any federal income tax (report in box 4) under the backup withholding rules regardless of the amount of the payment. 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. Statements to Recipients If you are required to file Form 1099-G, you must furnish the same information to the recipient. Furnish a copy of Form 1099-G or an acceptable substitute statement to each recipient, except as explained later under Box 2. State or Local Income Tax Refunds, Credits, or Offsets. Also, see part M in the current General Instructions for Certain Information Returns. Truncating recipient’s TIN on payee statements. Pursuant to Regulations section 301.6109-4, all filers of this form may truncate a recipient’s TIN (social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or employer identification number (EIN)) on payee statements. Truncation is not allowed on any documents the filer files with the IRS. A payer's TIN may not be truncated on any form. See part J in the current General Instructions for Certain Information Returns. Account Number The account number is required if you have multiple accounts for a recipient for whom you are filing more than one Form 1099-G. Additionally, the IRS encourages you to designate an account number for all Forms 1099-G that you file. See part L in the current General Instructions for Certain Information Returns. 2nd TIN Not. You may enter an “X” in this box if you were notified by the IRS twice within 3 calendar years that the taxpayer provided an incorrect TIN. If you mark this box, the IRS will not send you any further notices about this account. However, 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. See part N in the current General Instructions for Certain Information Returns for more information. For information on the TIN Matching System offered by the IRS, see Items You Should Note in the current General Instructions for Certain Information Returns. States have experienced a surge in fraudulent unemployment claims. Criminals are engaging in identity theft (IDT) to fraudulently collect benefits across multiple states. For information on reporting IDT and other types of unemployment fraud, including claimant fraud or employer fraud, go to DOL.gov/agencies/eta/UIIDtheft. Box 1. Unemployment Compensation Enter payments of $10 or more in unemployment compensation, including Railroad Retirement Board payments for unemployment. If you make payments from a contributory program that has been deemed to be in the nature of unemployment compensation, such as California's Family Temporary Disability Insurance payments or governmental paid family leave program payments, file a separate Form 1099-G for payments from each contributory program. Enter the total amount before any income tax was withheld. If you withhold federal income tax at the request of the recipient, enter it in box 4; see the instructions below. Box 2. State or Local Income Tax Refunds, Credits, or Offsets Enter refunds, credits, or offsets of state or local income tax of $10 or more you made to recipients. These include refunds or carryforward credits of overpayments of tax due to refundable state tax credits and incentive payments that are paid under an existing state tax law and administered by the state taxing agency. Filmmaker incentive credits, home improvement credits paid in low-income areas, and solar panel installation credits are some types of state programs which are generally reportable in box 2, to the extent a refund is paid by the state taxing agency or amount allowed as carryforward credit to the next tax year. Do not enter in box 2 payments that are not state income tax refunds, credits, or offsets. This may include payments made under state grant, incentive, subsidy, or other individual assistance programs. Taxable grants are reported in box 6; see the instructions below. If recipients deducted the tax paid to a state or local government on their federal income tax returns, any refunds, credits, or offsets may be taxable to them. You are not required to furnish a copy of Form 1099-G or a substitute statement to the recipient if you can determine that the recipient did not claim itemized deductions on the recipient's federal income tax return for the tax year giving rise to the refund, credit, or offset. However, you must file Form 1099-G with the IRS in all cases. A tax on dividends, a tax on net gains from the sale or exchange of a capital asset, and a tax on the net taxable income of an unincorporated business are taxes on gain or profit rather than on gross receipts. Therefore, they are income taxes, and any refund, credit, or offset of $10 or more of these taxes is reportable on Form 1099-G. In the case of the dividends tax and the capital gains tax, if you determine that the recipient did not itemize deductions, as explained above, you are not required to furnish a Form 1099-G or substitute statement to the recipient. However, in the case of the tax on unincorporated businesses, you must furnish a Form 1099-G or substitute statement to the recipient in all cases, as this is a tax that applies exclusively to income from a trade or business. See Box 8. Trade or Business Income (Checkbox), later, and Rev. Rul. 86-140, 1986-2 C.B. 195. If you pay interest of $600 or more on the refund, you must file Form 1099-INT, Interest Income, and furnish a statement to the recipient. For interest payments of less than $600, you may choose to enter the amount with an appropriate designation such as “Interest Income” in the blank box on Copy B of the Form 1099-G. Box 3. Box 2 Amount Is for Tax Year No entry is required in box 3 if the refund, credit, or offset is for the current tax year. If it is for any other tax year, enter the year for which the refund, credit, or offset was made. Also, if the refunds, credits, or offsets are for more than 1 tax year, report the amount for each year on a separate Form 1099-G. Use the format “YYYY” to make the entry in this box. For example, enter “2020,” not “20.” Box 4. Federal Income Tax Withheld Backup withholding. Enter backup withholding on payments required to be reported in box 5, 6, or 7. You must backup withhold on such payments at a rate of 24% if a recipient does not furnish its TIN to you or if you are notified by the IRS that the TIN is incorrect (Notice CP2100 or CP2100A). For more information on backup withholding, see part N in the current General Instructions for Certain Information Returns. Voluntary withholding. Enter any voluntary federal withholding on unemployment compensation, CCC loans, and certain crop disaster payments. If you withhold state income tax, see Boxes 10a Through 11. State Information , later. However, you are not required to report state withholding to the IRS. Voluntary withholding on RTAA payments is not permitted. Box 5. RTAA Payments Enter RTAA payments of $600 or more that you paid to eligible individuals under the Reemployment Trade Adjustment Assistance program. Box 6. Taxable Grants Enter any amount of a taxable grant 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, enter any amount of a taxable grant administered by an Indian tribal government. Report amounts of other taxable grants of $600 or more. State and local grants are ordinarily taxable for federal income purposes. A federal grant is ordinarily taxable unless stated otherwise in the legislation authorizing the grant. Do not report scholarship or fellowship grants. See Scholarships in the Instructions for Forms 1099-MISC and 1099-NEC. Box 7. Agriculture Payments Enter USDA agricultural subsidy payments made during the year, including market facilitation program payments. If you are a nominee that received subsidy payments for another person, file Form 1099-G to report the actual owner of the payments and report the amount of the payments in box 7. Box 8. Trade or Business Income (Checkbox) If the amount in box 2 is a refund, credit, or offset attributable to an income tax that applies exclusively to income from a trade or business and is not a tax of general application, enter an “X” in this box. Box 9. Market Gain Report market gain associated with the repayment of a CCC loan whether repaid using cash or CCC certificates. Boxes 10a Through 11. State Information These boxes may be used by filers who participate in the Combined Federal/State Filing Program and/or who are required to file paper copies of this form with a state tax department. See Pub. 1220 for more information regarding the Combined Federal/State Filing Program. They are provided for your convenience only and need not be completed for the IRS. Use the state information boxes to report payments for up to two states. Keep the information for each state separated by the dash line. In box 10a, enter the abbreviated name of the state. In box 10b, enter the filer's state identification number. The state number is the filer's identification number assigned by the individual state. In box 11, enter the amount of any state income tax withheld. If a state tax department requires that you send them a paper copy of this form, use Copy 1 to provide information to the state tax department. Give Copy 2 to the recipient for use in filing the recipient's state income tax return.
