Instructions For Form 1099-G - 2018 (Page 2 of 2) in pdf

other individual assistance programs. Taxable grants are

Box 6. Taxable Grants

reported in box 6; see the instructions below. If recipients

Enter any amount of a taxable grant administered by a

deducted the tax paid to a state or local government on

federal, state, or local program to provide subsidized

their federal income tax returns, any refunds, credits, or

energy financing or grants for projects designed to

offsets may be taxable to them. You are not required to

conserve or produce energy, but only with respect to

furnish a copy of Form 1099-G or a substitute statement to

energy property or a dwelling unit located in the United

the recipient if you can determine that the recipient did not

States. Also, enter any amount of a taxable grant

claim itemized deductions on the recipient's federal

administered by an Indian tribal government.

income tax return for the tax year giving rise to the refund,

Report amounts of other taxable grants of $600 or

credit, or offset. However, you must file Form 1099-G with

more. State and local grants are ordinarily taxable for

the IRS in all cases.

federal income purposes unless it can be determined that

A tax on dividends, a tax on net gains from the sale or

they are excludable. A federal grant is ordinarily taxable

exchange of a capital asset, and a tax on the net taxable

unless stated otherwise in the legislation authorizing the

income of an unincorporated business are taxes on gain

grant. Do not report scholarship or fellowship grants. See

or profit rather than on gross receipts. Therefore, they are

Scholarships in the Instructions for Form 1099-MISC.

income taxes, and any refund, credit, or offset of $10 or

Box 7. Agriculture Payments

more of these taxes is reportable on Form 1099-G. In the

case of the dividends tax and the capital gains tax, if you

Enter USDA agricultural subsidy payments made during

determine that the recipient did not itemize deductions, as

the year. If you are a nominee that received subsidy

explained above, you are not required to furnish a Form

payments for another person, file Form 1099-G to report

1099-G or substitute statement to the recipient. However,

the actual owner of the payments and report the amount

in the case of the tax on unincorporated businesses, you

of the payments in box 7.

must furnish a Form 1099-G or substitute statement to the

Box 8. Trade or Business Income (Checkbox)

recipient in all cases, as this is a tax that applies

exclusively to income from a trade or business. See

Box

If the amount in box 2 is a refund, credit, or offset

8. Trade or Business Income

(Checkbox), later, and Rev.

attributable to an income tax that applies exclusively to

Rul. 86-140, 1986-2 C.B. 195.

income from a trade or business and is not a tax of

general application, enter an “X” in this box.

If you pay interest of $600 or more on the refund, you

must file Form 1099-INT, Interest Income, and furnish a

Box 9. Market Gain

statement to the recipient. For interest payments of less

Report market gain associated with the repayment of a

than $600, you may choose to enter the amount with an

CCC loan whether repaid using cash or CCC certificates.

appropriate designation such as “Interest Income” in the

blank box on Copy B of the Form 1099-G.

Boxes 10a Through 11. State Information

These boxes may be used by filers who participate in the

Box 3. Box 2 Amount Is For Tax Year

Combined Federal/State Filing Program and/or who are

No entry is required in box 3 if the refund, credit, or offset

required to file paper copies of this form with a state tax

is for the 2017 tax year. If it is for any other tax year, enter

department. See Pub. 1220 for more information

the year for which the refund, credit, or offset was made.

regarding the Combined Federal/State Filing Program.

Also, if the refunds, credits, or offsets are for more than 1

They are provided for your convenience only and need

tax year, report the amount for each year on a separate

not be completed for the IRS. Use the state information

Form 1099-G. Use the format “YYYY” to make the entry in

boxes to report payments for up to two states. Keep the

this box. For example, enter “2016”, not “ '16.”

information for each state separated by the dash line. If

you withheld state income tax on this payment, you may

Box 4. Federal Income Tax Withheld

enter it in box 11. In box 10a, enter the abbreviated name

Backup withholding. Enter backup withholding at a

of the state. In box 10b, enter the filer's state identification

28% rate on payments required to be reported in box 6 or

number. The state number is the filer's identification

7 if a recipient does not furnish its TIN to you or if you are

number assigned by the individual state. In box 11, enter

notified to backup withhold on a Notice CP2100. For

the amount of any state income tax withheld.

example, if a recipient does not furnish its TIN to you, you

If a state tax department requires that you send them a

must backup withhold.

paper copy of this form, use Copy 1 to provide information

Voluntary withholding. Enter any voluntary federal

to the state tax department. Give Copy 2 to the recipient

withholding on unemployment compensation, CCC loans,

for use in filing the recipient's state income tax return.

and certain crop disaster payments. If you withhold state

income tax, see Boxes 10a Through Box 11. State

Information, later. However, you are not required to report

state withholding to the IRS.

Box 5. RTAA Payments

Enter RTAA payments of $600 or more that you paid to

eligible individuals under the Reemployment Trade

Adjustment Assistance program.

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Instructions for Form 1099-G (2018)

Instructions For Form 1099-G - 2018 Page 2

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