Form 1099-G 2016 Checklist
Purpose
Form 1099-G reports government payments, including unemployment compensation, state/local tax refunds, RTAA payments, taxable grants, and agriculture payments. Federal, state, and local government units use this form to document specific payment types made to recipients during the calendar year.
Payers must issue a separate Form 1099-G if you made contributions to a governmental unemployment compensation program or a governmental paid family leave program and received payments from that program. This separate reporting requirement allows you to properly account for contributions you made when calculating taxable income on your federal return.
Filing Requirements and Recipient Actions
Verify that Box 1 unemployment compensation includes all payments you received during 2016.
If you made contributions to a government-funded family leave program and received payments, confirm the payer issued a separate Form 1099-G for that amount.
You may deduct your contributions on Schedule A (Form 1040) as taxes paid if you itemize deductions. If you do not itemize, include in income only the amount that exceeds your contributions.
Review Box 3 to identify the tax year for the refund shown in Box 2. If Box 3 is blank, the refund applies to 2015 taxes only and should not be treated as 2016 income unless Box 3 indicates another year requiring adjustment.
Confirm that Box 4 federal income tax withheld reflects backup withholding or requested withholding on unemployment, CCC loans, or crop disaster payments. Report this amount as tax withheld on your 2016 Form 1040.
Specific Box Instructions
Check Box 6 for taxable grants from federal, state, or local government programs. Report taxable grant amounts on Form 1040 "Other income" line per 2016 Form 1040 instructions.
If Box 7 shows agriculture payments, verify the payer is the Department of Agriculture or a nominee acting on your behalf. Report agriculture payments on Schedule F (Form 1040) per 2016 Instructions for Schedule F.
Partnerships must report these amounts on Form 8825, while individual farmers use Schedule F (Form 1040) for reporting purposes. Box 7 includes USDA agricultural subsidy payments made during 2016.
If Box 8 is checked, the Box 2 amount reflects income tax on trade or business income exclusively. Report the Box 2 amount on 2016 Schedule C or F (Form 1040) rather than as a non-business refund.
Confirm Box 9 market gain on CCC loans includes gains from loans repaid using cash or CCC certificates. Report this market gain on 2016 Schedule F per Instructions for Schedule F (Form 1040).
State Information and Record Retention
Match Box 10a–10b (state information) and Box 11 (state income tax withheld) to your state tax return filing if your state requires reporting. These boxes provide state-specific information for filers participating in the Combined Federal/State Filing Program or those required to file paper copies with state tax departments.
Retain Copy B for your 2016 tax records throughout the period when the IRS may examine your return. The retention period typically extends at least three years from the filing date, though longer retention may be necessary in certain circumstances involving underreported income or unfiled returns.
Tax Treatment of Box 2 Refunds
Box 2 shows refunds, credits, or offsets of state or local income tax you received during 2016. The amount may be taxable if you deducted the state or local income tax paid on Schedule A (Form 1040) in the prior year.
The refund remains taxable even if you did not physically receive it because it was credited to estimated tax, offset against federal or state debts, or used for charitable contributions from your refund. If the payer paid interest on your refund, you should receive Form 1099-INT for interest amounts of $600 or more.
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.
2016 Deadlines and Filing Requirements
The payer must furnish Copy B to you by January 31, 2017, ensuring you receive the form before the typical tax filing season begins. Copy A must be filed with the IRS by February 28, 2017, for paper filing or March 31, 2017, for electronic filing.
Backup Withholding and Voluntary Withholding
Box 4 includes two types of withholding: backup withholding and voluntary withholding. Backup withholding occurs when you fail to provide your taxpayer identification number to the payer or when the IRS notifies the payer to withhold.
The backup withholding rate for 2016 is 28 percent. Voluntary withholding applies when you request federal income tax withholding from unemployment compensation, CCC loans, or certain crop disaster payments.
Recipient Exemptions From Statement Requirement
Payers do not need to furnish you a copy of Form 1099-G or a substitute statement for Box 2 amounts if they determine you did not claim itemized deductions on your federal income tax return for the tax year that generated the refund, credit, or offset. This exemption applies to refunds of general income taxes, dividend taxes, and capital gains taxes.
The exemption does not apply to refunds of taxes on unincorporated business income. Payers must still file Form 1099-G with the IRS in all cases, regardless of whether they furnish a statement to you.
Agricultural Payment Reporting
Box 7 reports USDA agricultural subsidy payments made during 2016, including payments received directly or through a nominee. If a nominee received subsidy payments on your behalf, the nominee files Form 1099-G showing you as the actual owner of those payments.
Interest on Refunds
Interest amounts below $600 may appear in the blank box next to Box 9 on Form 1099-G rather than on a separate Form 1099-INT. Report all interest as interest income on your tax return, regardless of the amount shown or the form used to report it.
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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.
