Certain Government Payments

2015

Instructions for Form 1099-G

Department of the Treasury
Internal Revenue Service

Certain Government Payments
Section references are to the Internal Revenue Code
unless otherwise noted.

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 www.irs.gov/
form1099g.

Reminder

In addition to these specific instructions, you should also
use the 2015 General Instructions for Certain Information
Returns. Those general instructions include information
about the following topics.
Who must file (nominee/middleman).
When and where to file.
Electronic reporting requirements.
Corrected and void returns.
Statements to recipients.
Taxpayer identification numbers.
Backup withholding.
Penalties.
Other general topics.
You can get the general instructions from www.irs.gov/
form1099g or by calling 1-800-TAX-FORM
(1-800-829-3676).

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.

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 2015 General Instructions for
Certain Information Returns.
Truncating recipient’s identification number on
payee statements. Pursuant to Treasury Regulations
section 301.6109-4, all filers of this form may truncate a
recipient’s identification number (social security number
(SSN), individual taxpayer identification number (ITIN),
adoption taxpayer identification number (ATIN), or
Sep 19, 2014

employer identification number (EIN)) on payee
statements. Truncation is not allowed on any documents
the filer files with the IRS. A payer's identification number
may not be truncated on any form. See part J in the 2015
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 2015 General Instructions for
Certain Information Returns.

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.

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. 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

Cat. No. 27979M

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.

Report amounts of other taxable grants of $600 or
more. 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 Form 1099-MISC.

Box 7. Agriculture Payments

Enter USDA agricultural subsidy payments made during
the year. 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 3. Box 2 Amount Is For Tax Year

No entry is required in box 3 if the refund, credit, or offset
is for the 2014 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 2013, not '13.

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 4. Federal Income Tax Withheld

Box 9. Market Gain

Backup withholding. Enter backup withholding at a
28% rate on payments required to be reported in box 6 or
7. For example, if a recipient does not furnish its taxpayer
identification number (TIN) to you, you must backup
withhold.

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 Publication 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. If
you withheld state income tax on this payment, you may
enter it in box 11. 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, you
may enter the amount of the state payment.

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 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.

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.

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.

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Instructions for Form 1099-G (2015)