Instructions For Form 1099-G - 2016 (Page 2 of 2) in pdf

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

energy financing or grants for projects designed to

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

conserve or produce energy, but only with respect to

income of an unincorporated business are taxes on gain

energy property or a dwelling unit located in the United

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

States. Also, enter any amount of a taxable grant

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

administered by an Indian tribal government.

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

Report amounts of other taxable grants of $600 or

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

more. State and local grants are ordinarily taxable for

determine that the recipient did not itemize deductions, as

federal income purposes unless it can be determined that

explained above, you are not required to furnish a Form

they are excludable. A federal grant is ordinarily taxable

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

unless stated otherwise in the legislation authorizing the

in the case of the tax on unincorporated businesses, you

grant. Do not report scholarship or fellowship grants. See

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

Scholarships in the Instructions for Form 1099-MISC.

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

exclusively to income from a trade or business. See

Box

Box 7. Agriculture Payments

8. Trade or Business Income

(Checkbox), later, and Rev.

Enter USDA agricultural subsidy payments made during

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

the year. If you are a nominee that received subsidy

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

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

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

the actual owner of the payments and report the amount

statement to the recipient. For interest payments of less

of the payments in box 7.

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

appropriate designation such as “Interest Income” in the

Box 8. Trade or Business Income (Checkbox)

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

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

attributable to an income tax that applies exclusively to

Box 3. Box 2 Amount Is For Tax Year

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

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

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

is for the 2015 tax year. If it is for any other tax year, enter

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

Box 9. Market Gain

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

Report market gain associated with the repayment of a

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

CCC loan whether repaid using cash or CCC certificates.

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

this box. For example, enter 2014, not '14.

Boxes 10a Through 11. State Information

These boxes may be used by filers who participate in the

Box 4. Federal Income Tax Withheld

Combined Federal/State Filing Program and/or who are

Backup withholding. Enter backup withholding at a

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

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

department. See Publication 1220 for more information

7. For example, if a recipient does not furnish its taxpayer

regarding the Combined Federal/State Filing Program.

identification number (TIN) to you, you must backup

They are provided for your convenience only and need

withhold.

not be completed for the IRS. Use the state information

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

Voluntary withholding. Enter any voluntary federal

information for each state separated by the dash line. If

withholding on unemployment compensation, CCC loans,

you withheld state income tax on this payment, you may

and certain crop disaster payments. If you withhold state

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

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

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

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

number. The state number is the filer's identification

state withholding to the IRS.

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

the amount of any state income tax withheld.

Box 5. RTAA Payments

If a state tax department requires that you send them a

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

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

eligible individuals under the Reemployment Trade

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

Adjustment Assistance program.

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

Box 6. Taxable Grants

Enter any amount of a taxable grant administered by a

federal, state, or local program to provide subsidized

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Instructions for Form 1099-G (2016)

Instructions For Form 1099-G - 2016 Page 2

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