Form 1099-G 2014 Checklist
Purpose and Reporting Scope
Form 1099-G reports government payments, including unemployment compensation, state and local income tax refunds, credits or offsets, reemployment trade adjustment assistance payments, taxable grants, and agriculture payments. Payers must verify their federal identification number matches the issuing government agency and appears consistently across all copies submitted to the Internal Revenue Service and furnished to recipients.
Box 3 identifies the tax year for which Box 2 refunds apply, and blank entries in Box 3 indicate the refund relates to the immediately preceding tax year. This year-of-deduction information affects recipient taxability calculations under the tax benefit rule and requires careful cross-referencing with Schedule A filings.
Recipient Identification and Privacy Protection
The recipient identification number must show the complete Social Security Number, Individual Taxpayer Identification Number, or Adoption Taxpayer Identification Number on Copy A filed with the Internal Revenue Service. Copy B furnished to the recipient may display only the last four digits of the identification number for privacy protection.
The payer must maintain complete identification records for all recipients in their internal files and business records. This recordkeeping requirement applies regardless of the truncation permitted on Copy B furnished to recipients for privacy protection purposes.
Box 1: Unemployment Compensation Reporting
Complete Box 1 only when unemployment compensation payments were made during the 2014 calendar year. Recipients who receive multiple Forms 1099-G from different payers must combine all Box 1 amounts and report the total on the unemployment compensation line of Form 1040.
The amount reported in Box 1 includes all unemployment benefits paid under state unemployment compensation laws. These payments must meet the definition of unemployment compensation under Internal Revenue Code Section 85 provisions to qualify for reporting in this box.
This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
Box 2: State and Local Tax Refunds
Enter the total state or local income tax refunds, credits, or offsets in Box 2 and reference Box 3 to identify the specific tax year for which the refund applies. When Box 3 remains blank, the refund pertains to taxes paid in the immediately preceding tax year.
Taxability depends on whether the recipient deducted state and local taxes on Schedule A for that year. The tax benefit rule determines whether recipients must report these refunds as taxable income on Form 1040.
Box 4: Federal Income Tax Withheld
Report federal income tax withheld in Box 4 when backup withholding applies or when the recipient requested voluntary withholding on unemployment compensation, Commodity Credit Corporation loans, or crop disaster payments.
Recipients include this amount as tax withheld on Form 1040. Backup withholding rules apply when recipients fail to furnish their taxpayer identification number on Form W-9. Recipients include the withheld amount as tax paid on their returns.
Box 5: Reemployment Trade Adjustment Assistance
Enter Box 5 amounts only when reemployment trade adjustment assistance payments were issued to the recipient during the 2014 calendar year. These payments represent benefits provided under the Trade Adjustment Assistance program to eligible workers affected by foreign trade.
Recipients must report these payments on the "Other income" line of Form 1040 according to the Form 1040 instructions. The reemployment trade adjustment assistance amounts are taxable income and must be included in the recipient's gross income for the year received.
Box 6: Taxable Grants
Complete Box 6 when recipients received payments from federal, state, or local government grant programs during 2014. Verify the amount qualifies as taxable under applicable Internal Revenue Code provisions before reporting.
This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
Recipients must determine proper reporting treatment based on the specific grant program and applicable tax rules. The taxability of grant payments depends on the program purpose and whether the grant meets exclusion criteria under tax law.
Box 7: Department of Agriculture Payments
Enter Box 7 amounts only when the payer is the United States Department of Agriculture or a nominee receiving agricultural subsidy payments on behalf of recipients. Recipients report these payments on Schedule F per the Instructions for Schedule F and Publication 225.
Nominee reporting requires the payer to disclose whether the amount represents the entire original payment or the recipient's pro rata share, and recipients cross-reference Publication 225 for Schedule F reporting rules.
Box 8: Trade or Business Income Indicator
Check Box 8 when the Box 2 amount is attributable to a state or local income tax that the recipient originally deducted as a business expense on Schedule C, Schedule F, or another business schedule rather than as an itemized deduction on Schedule A. When Box 8 is checked, recipients report the refund as business income on the same schedule where the original deduction was taken. When Box 8 remains unchecked, recipients may report the refund as a recovery of an itemized deduction under the tax benefit rule on Form 1040.
Box 9: Market Gain on Commodity Credit Corporation Loans
Complete Box 9 when Commodity Credit Corporation loans were repaid using cash or Commodity Credit Corporation certificates. Recipients report these amounts per the Instructions for Schedule F and applicable agricultural income reporting rules.
Filing and Furnishing Deadlines
Furnish Copy B to recipients by January 31, 2015, or the next business day when January 31 falls on a weekend or holiday. File Copy A with the Internal Revenue Service by February 28, 2015, for paper filing, or by March 31, 2015, when filing electronically using compliant software.
This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
State Reporting Requirements
Attach Copy 2 to the recipient's state income tax return when required by state law. Complete Box 10a with the appropriate state code and Box 10b with the state identification number when state filing is mandatory. State reporting requirements vary by jurisdiction, and payers must comply with applicable state regulations.
Interest on Tax Refunds
Interest on state or local income tax refunds is taxable income to recipients and must be reported as interest income on Form 1040. When payers pay interest of ten dollars or more, they should issue Form 1099-INT rather than include the amount on Form 1099-G. Recipients must report all interest income regardless of whether they receive Form 1099-INT documentation.
Year-of-Deduction Cross-Reference
Box 3 serves as the year-of-deduction indicator for Box 2 entries, affecting Schedule A deduction reconciliation for recipients claiming the tax benefit rule. When Box 3 remains blank, the refund defaults to the immediately preceding tax year.
Recipients must determine taxability by reviewing whether they claimed itemized deductions for state and local taxes in the applicable year and whether those deductions provided a tax benefit.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
