Form 1099-G Instructions

What is IRS Form 1099-G?

Form 1099-G is an informational tax form used to report certain types of government payments. These payments may include:

• Unemployment compensation
• State or local income tax refunds
• Taxable grants
• Other types of government payments

The form provides the recipient and the IRS with information about the amount of these payments, which may be taxable and need to be reported on the recipient's tax return.

Who needs to file Form 1099-G?

Entities, including federal, state, or local governments, need to file Form 1099-G if they have made certain types of payments. These payments include:

• Unemployment compensation
• State or local income tax refunds, credits, or offsets
• Reemployment trade adjustment assistance (RTAA) payments
• Taxable grants
• Agricultural payments

The form must be filed to report these payments to the IRS and the recipients.

When is the Form 1099-G due date?

Payers must be aware of two important deadlines related to Form 1099-G:

Filing deadline with the IRS

The deadline for payers to submit Form 1099-G to the IRS depends on the filing method:

• Electronic filing deadline: April 01, 2024
  If you are e-filing Form 1099-G with the IRS, the deadline is March 31st of the year following the tax year for which the form is being issued.
Note: If the deadline falls on a federal holiday or weekend, the form is due on the next business day.

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• Paper filing deadline: February 28th
  If you are filing Form 1099-G with the IRS using traditional paper methods, the deadline is February 28th of the year following the tax year for which the form is issued.

Recipient copies deadline: January 31

Payers must deliver copies of Form 1099-G to recipients by January 31st of the year following the relevant tax year. This allows recipients to accurately file their tax returns on time.

Missing these deadlines or providing incorrect information on Form 1099-G can lead to IRS penalties. To avoid potential penalties, payers should take steps to ensure that Form 1099-G is filed and distributed both accurately and on time.

Form 1099-G penalty

If you miss filing Form 1099-G within the deadline, the IRS will impose a penalty. Here are the Form 1099-G penalty rates:

Form 1099-G Instructions - How to fill out?

Let's see line-by-line instructions on how to fill out Form 1099-G.

Payer details

Enter your name or business name, complete address, and TIN (SSN if you're an individual; EIN if you're a business)

Recipient details

Enter the recipient’s name, complete address, and TIN (SSN for an individual; EIN for a business).

• Account number: You must provide the account number if you have multiple accounts for the same recipient and filing more than one Form 1099-G for that recipient.
• 2nd TIN not: If the IRS has notified you two times within the last 3 years that the payee provided an incorrect TIN, you can enter an "X" in this box. By doing so, the IRS will stop sending you further notices about this account's TIN.

Box 1: Unemployment Compensation

Enter any unemployment compensation payments of $10 or more in this box. This includes payments from:

• Unemployment benefits
• Railroad Retirement Board unemployment payments
• Payments from contributory programs considered unemployment compensation (like California's Family Temporary Disability Insurance or governmental paid family leave programs)

Report the total payment amount before any federal income tax withholding.

Box 2: State or Local Income Tax Refunds, Credits, or Offsets

Enter any of the following payments of $10 or more in this box:

• Refunds of state or local income tax
• Credits for state or local income tax overpayments
• Offsets/reductions of state or local income tax owed

This includes:

• Refunds or carry-forward credits from refundable state tax credits
• Incentive payments made under existing state tax laws and administered by the state tax agency

Box 3: Tax Year for Box 2 Amount

• If the amount in Box 2 is for the current tax year, leave Box 3 blank.
• If the amount in Box 2 is for a previous tax year, enter the tax year it applies to in Box 3 in the “YYYY” format.

If you are reporting amounts from Box 2 that are for multiple tax years, file a separate Form 1099-G for each tax year, showing only the amount for that specific year.

Box 4: Federal income tax withheld

Report any federal income tax withheld from payments reported.

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 the following taxable grant amounts in this box:

• Grants from federal, state, or local programs providing energy financing or grants for U.S. energy/conservation projects
• Taxable grants from Indian tribal governments
• Other taxable grants of $600 or more

Report:

• State and local grants (typically taxable for federal income)
• Federal grants, unless the legislation specifically makes them non-taxable

DO NOT report scholarships or fellowships in this box.

Box 7: Agriculture Payments

Enter the total amount of agricultural subsidy payments you received from the USDA (U.S. Department of Agriculture) during the year. This includes:

• Market facilitation program payments
• Any other USDA agricultural subsidy payments

If you received subsidy payments on behalf of someone else (as a nominee), file Form 1099-G.

Box 8: Trade or Business Income

Check the box if the Box 2 amount is for a tax refund/credit specifically related to business income, not personal income.

Box 9: Market Gain

Report market gain associated with the repayment of a CCC loan, whether repaid using cash or CCC certificates.

Box 10 and 11: State information

Box 10a: Enter the 2-letter state abbreviation for the state

Box 10b: Enter the state identification number

Box 11: Report any state income tax withheld from the payment

How to File Form 1099-G

You can file Form 1099-G, either electronically or by mail.

Electronic Filing (E-filing)

E-filing is the IRS-recommended method due to its efficiency, accuracy, and quick processing notifications.

To e-file Form 1099-G, you can use an IRS-authorized e-file service provider, such as TaxZerone. TaxZerone simplifies the e-filing process and allows you to complete it within minutes. Here's how it works:

1. Enter the required information, including:
1. Payer's name, address, and TIN
2. Recipient's name, address, and TIN
3. Payment details
2. Review all entered information for accuracy.
3. Transmit the form securely to the IRS.
4. Provide a copy to the recipient.

Paper filing

While less efficient, paper filing remains an option for those who prefer it. Here are the steps for paper filing:

Steps for paper filing:

1. Download Form 1099-G from the official IRS website (www.irs.gov).
2. Print the form.
Note: The IRS requires special red ink forms for submission. You can order these from the IRS or approved vendors.
3. Complete all required fields using black ink. This includes:
1. Payer's information
2. Recipient's information
3. Payment details
4. Make a copy for your records.
5. Mail the original form to the IRS address specified in the Form 1099 General Instructions. The address varies based on your state. Refer to the Where to send Form 1099-G - Mailing address section to get the address for your state.
6. Send a copy to the recipient by February 15th of the year following the reportable transaction.

Important considerations for paper filing

• Mail forms several weeks before the deadline to ensure timely arrival.
• Use certified mail for proof of timely filing.
• Ensure all copies are legible.

Alternatively, you can file Form 1099-G electronically for faster processing and delivery, reducing the risk of delays or lost forms.

Where to send Form 1099-G - Mailing address

If you prefer paper filing, the mailing address for Form 1099-G varies depending on your business location. Below is a table summarizing the mailing address for Form 1099-G:

How to E-File Form 1099-G with TaxZerone

Before you start e-filing Form 1099-G, ensure you have all the necessary information to facilitate a smooth and efficient filing experience. Here’s what you need to gather:

Required information for filing Form 1099-G:

• Business details
• Recipient details
• Unemployment compensation
• State or local income tax refunds, credits, or offsets
• RTAA payments
• Taxable grants
• Agriculture payments
• Market gain
• Federal and state income tax withheld

Steps to e-file Form 1099-G using TaxZerone:

Step 1: Complete Form 1099-G
Open Form 1099-G and fill out the necessary fields with the information you have gathered.

Step 2: Review and transmit the return
Carefully review all the entered information to ensure accuracy. Once verified, transmit the completed Form 1099-G to the IRS.

Step 3: Provide the recipient copy
After successfully transmitting the form to the IRS, send a copy of the completed Form 1099-G to the recipient.

Benefits of E-Filing Form 1099-G with TaxZerone

E-filing Form 1099-G with TaxZerone offers several advantages:

• IRS Form Validations: TaxZerone's system checks your returns for errors or missing information, ensuring accuracy before submission.
• Email Recipient Copies: Conveniently send recipient copies of Form 1099-G via email, eliminating the need for manual mailing.
• Secure Portal Access (ZeroneVault): Recipients can access their return copies anytime, anywhere through the secure ZeroneVault portal.
• Competitive Pricing: TaxZerone offers industry-leading pricing, with rates starting as low as $0.59 per form, making it affordable for businesses of all sizes.

By using TaxZerone's e-filing solution, you can streamline your Form 1099-G filing, save time, reduce errors, and provide a better experience for your recipients.