Instructions For Form 1099 G - Certain Government Payments

claim itemized deductions on the recipient's federal

Box 6. Taxable Grants

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

Enter any amount of a taxable grant administered by a

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

federal, state, or local program to provide subsidized

the IRS in all cases.

energy financing or grants for projects designed to

conserve or produce energy, but only with respect to

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

energy property or a dwelling unit located in the United

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

States. Also, enter any amount of a taxable grant

income of an unincorporated business are taxes on gain

administered by an Indian tribal government.

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

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

Report amounts of other taxable grants of $600 or

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

more. State and local grants are ordinarily taxable for

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

federal income purposes unless it can be determined that

determine that the recipient did not itemize deductions, as

they are excludable. A federal grant is ordinarily taxable

explained above, you are not required to furnish a Form

unless stated otherwise in the legislation authorizing the

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

grant. Do not report scholarship or fellowship grants. See

in the case of the tax on unincorporated businesses, you

Scholarships in the Instructions for Form 1099-MISC.

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

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

Box 7. Agriculture Payments

exclusively to income from a trade or business. See

Box

Enter USDA agricultural subsidy payments made during

8. Trade or Business Income

(Checkbox), later, and Rev.

the year. If you are a nominee that received subsidy

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

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

the actual owner of the payments and report the amount

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

of the payments in box 7.

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

statement to the recipient. For interest payments of less

Box 8. Trade or Business Income (Checkbox)

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

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

appropriate designation such as “Interest Income” in the

attributable to an income tax that applies exclusively to

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

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

Box 3. Box 2 Amount Is For Tax Year

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

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

Box 9. Market Gain

is for the 2016 tax year. If it is for any other tax year, enter

Report market gain associated with the repayment of a

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

CCC loan whether repaid using cash or CCC certificates.

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

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

Boxes 10a Through 11. State Information

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

These boxes may be used by filers who participate in the

this box. For example, enter 2015, not '15.

Combined Federal/State Filing Program and/or who are

Box 4. Federal Income Tax Withheld

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

department. See Pub. 1220 for more information

Backup withholding. Enter backup withholding at a

regarding the Combined Federal/State Filing Program.

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

They are provided for your convenience only and need

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

not be completed for the IRS. Use the state information

identification number (TIN) to you, you must backup

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

withhold.

information for each state separated by the dash line. If

Voluntary withholding. Enter any voluntary federal

you withheld state income tax on this payment, you may

withholding on unemployment compensation, CCC loans,

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

and certain crop disaster payments. If you withhold state

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

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

number. The state number is the filer's identification

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

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

state withholding to the IRS.

the amount of any state income tax withheld.

If a state tax department requires that you send them a

Box 5. RTAA Payments

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

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

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

eligible individuals under the Reemployment Trade

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

Adjustment Assistance program.

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Instructions for Form 1099-G (2017)

Instructions For Form 1099 G - Certain Government Payments - 2017 Page 2

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