
Form 1099-G and Instructions 
Certain Government Payments
2011

Cat. No. 33580R

Department of the Treasury
Internal Revenue Service

In 1 File
Print pages 1-5 and 1-2

Transcribed by
The Lighthouse for the Blind
New Orleans, LA
2010

Contents

Section:  Page
Form 1099-G:  1
     Copy A--For IRS:  1
     Copy B--For Recipient:  2
     Instructions for Recipient:  3
     Copy C--For Payer:  4
     Instructions for Payer:  5
2011 Instructions for Form 1099-G:  1
     What's New:  1
     Reminder:  1
     Specific Instructions:  1

This electronic edition contains the entire text of the print editions.


<page 1>

Form 1099-G
Certain Government Payments
2011

Copy A
For Internal Revenue Service Center

File with Form 1096.

VOID --; CORRECTED --
PAYER'S name, street address, city, state, ZIP code, and telephone no.: ----
PAYER'S federal identification number: ----
RECIPIENT'S identification number: ----
RECIPIENT'S name: ----
Street address (including apt. no.): ----
City, state, and ZIP code: ----
Account number (see instructions): ----

1. Unemployment compensation: $----
2. State or local income tax refunds, credits, or offsets: $----
3. Box 2 amount is for tax year: ----
4. Federal income tax withheld: $----
5. ATAA payments: $----
6. Taxable grants: $----
7. Agriculture payments: $----
8. Check if box 2 is trade or business income: --
9. Market gain: $----
10a. State: ----
10b. State Identification no.: ----
11. State income tax withheld: $----

For Privacy Act and Paperwork Reduction Act Notice, see the 2011 General Instructions for Certain Information Returns.

<page 2>

Form 1099-G
Certain Government Payments
2011

Copy B
For Recipient
CORRECTED (if checked) --
PAYER'S name, street address, city, state, ZIP code, and telephone no.: ----
PAYER'S federal identification number: ----
RECIPIENT'S identification number: ----
RECIPIENT'S name: ----
Street address (including apt. no.): ----
City, state, and ZIP code: ----
Account number (see instructions): ----

1. Unemployment compensation: $----
2. State or local income tax refunds, credits, or offsets: $----
3. Box 2 amount is for tax year: ----
4. Federal income tax withheld: $----
5. ATAA payments: $----
6. Taxable grants: $----
7. Agriculture payments: $----
8. If checked, box 2 is trade or business income: --
9. Market gain: $----
10a. State: ----
10b. State Identification no.: ----
11. State income tax withheld: $----

This is important tax information and is being furnished to the Internal Revenue Service.  If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported.

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Instructions for Recipient

Account number. May show an account or other unique number the payer has assigned to distinguish your account.

Box 1. Shows the total unemployment compensation paid to you this year. Combine the box 1 amounts from all Forms 1099-G and report the total as income on the unemployment compensation line of your tax return. Except as explained below, this is your taxable amount. If you are married filing jointly, each spouse must figure his or her taxable amount separately. If you expect to receive these benefits in the future, you can ask the payer to withhold federal income tax from each payment. Or, you can make estimated tax payments. For details, see Form 1040-ES. If you made contributions to a governmental unemployment compensation program or to a governmental paid family leave program and received a payment from that program, the payer must issue a separate Form 1099-G to report this amount to you. If you itemize deductions, you may deduct your contributions on Schedule A (Form 1040) as taxes paid. If you do not itemize, you only need to include in income the amount that is in excess of your contributions.

Box 2. Shows refunds, credits, or offsets of state or local income tax you received. It may be taxable to you if you deducted the state or local income tax paid on Schedule A (Form 1040). Even if you did not receive the amount shown, for example, because it was credited to your state or local estimated tax, it is still taxable if it was deducted. If you received interest on this amount, you should receive Form 1099-INT for the interest. However, the payer may include interest of less than $600 in the blank box next to box 9 on Form 1099-G. Regardless of whether the interest is reported to you, report it as interest income on your tax return. See your tax return instructions.

Box 3. Identifies the tax year for which the box 2 refunds, credits, or offsets shown were made. If there is no entry in this box, the refund is for 2010 taxes.

Box 4. Shows backup withholding or withholding you requested on unemployment compensation, Commodity Credit Corporation (CCC) loans, or certain crop disaster payments. Generally, a payer must backup withhold on certain payments if you did not give your taxpayer identification number to the payer. See Form W-9 for information on backup withholding. Include this amount on your income tax return as tax withheld.

Box 5. Shows alternative trade adjustment assistance (ATAA) payments you received. Include on Form 1040 on the "Other income" line. See the Form 1040 instructions.

Box 6. Shows taxable grants you received from a federal, state, or local government.

Box 7. Shows your taxable Department of Agriculture payments. If the payer shown is anyone other than the Department of Agriculture, it means the payer has received a payment, as a nominee, that is taxable to you. This may represent the entire agricultural subsidy payment received on your behalf by the nominee, or it may be your pro rata share of the original payment. See Pub. 225 and the instructions for Schedule F (Form 1040) for information about where to report this income. Partnerships, see Form 8825 for how to report.

Box 8. If this box is checked, the amount in box 2 is attributable to an income tax that applies exclusively to income from a trade or business and is not a tax of general application. If taxable, report the amount in box 2 on Schedule C or F (Form 1040), as appropriate.

Box 9. Shows market gain on CCC loans whether repaid using cash or CCC certificates. See the instructions for Schedule F (Form 1040).

Boxes 10a-11. State income tax withheld reporting boxes.

<page 4>

Form 1099-G
Certain Government Payments
2011

Copy C
For Payer
VOID --; CORRECTED --
PAYER'S name, street address, city, state, ZIP code, and telephone no.: ----
PAYER'S federal identification number: ----
RECIPIENT'S identification number: ----
RECIPIENT'S name: ----
Street address (including apt. no.): ----
City, state, and ZIP code: ----
Account number (see instructions): ----

1. Unemployment compensation: $----
2. State or local income tax refunds, credits, or offsets: $----
3. Box 2 amount is for tax year: ----
4. Federal income tax withheld: $----
5. ATAA payments: $----
6. Taxable grants: $----
7. Agriculture payments: $----
8. Check if box 2 is trade or business income: --
9. Market gain: $----
10a. State: ----
10b. State Identification no.: ----
11. State income tax withheld: $----

For Privacy Act and Paperwork Reduction Act Notice, see the 2011 General Instructions for Certain Information Returns.

<page 5>

Instructions for Payer

General and specific form instructions are provided as separate products. The products you should use to complete Form 1099-G are the 2011 General Instructions for Certain Information Returns and the 2011 Instructions for Form 1099-G. A chart in the general instructions gives a quick guide to which form must be filed to report a particular payment. To order these instructions and additional forms, visit IRS.gov or call 1-800-TAX-FORM (1-800-829-3676).

Caution: Because paper forms are scanned during processing, you cannot file Forms 1096, 1097, 1098, 1099, 3921, 3922, or 5498 that you print from the IRS website.

Due dates. Furnish Copy B of this form to the recipient by January 31, 2012.

File Copy A of this form with the IRS by February 28, 2012. If you file electronically, the due date is April 2, 2012. To file electronically, you must have software that generates a file according to the specifications in Pub. 1220, Specifications for Filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G Electronically. IRS does not provide a fill-in form option.

Need help? If you have questions about reporting on Form 1099-G, call the information reporting customer service site toll free at 1-866-455-7438 or 304-263-8700 (not toll free). For TTY/TDD equipment, call 304-579-4827 (not toll free). The hours of operation are Monday through Friday from 8:30 a.m. to 4:30 p.m., Eastern time.

<page 1>

2011 Instructions for Form 1099-G

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

What's New

Pilot program for truncating an individual's identifying number on paper payee statements has ended. Filers of Form 1099-G must show the recipient's complete identifying number on all copies of the form.

Reminder

In addition to these specific instructions, you should also use the 2011 General Instructions for Certain Information Returns (Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G). Those general instructions include information about the following topics.
-- Backup withholding.
-- Electronic reporting requirements.
-- Penalties.
-- Who must file (nominee/middleman).
-- When and where to file.
-- Taxpayer identification numbers.
-- Statements to recipients.
-- Corrected and void returns.
-- Other general topics.

You can get the general instructions from IRS.gov 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; alternative trade adjustment assistance (ATAA) 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 provide 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 2011 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 2011 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 8. Trade or Business Income (Checkbox) on page 2 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.

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 2010 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 2009, not '09.

Box 4. Federal Income Tax Withheld

Backup withholding. Enter backup withholding at a 31% 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.

Voluntary withholding. Enter any voluntary federal withholding on unemployment compensation, CCC loans, and certain crop disaster payments. If you withheld state income tax see Box 10a through Box 11  later. However, you are not required to report state withholding to the IRS.

Box 5. ATAA Payments

Enter ATAA payments of $600 or more that you paid to eligible individuals under the Demonstration Project for Alternative Trade Adjustment Assistance for Older Workers.

<page 2>

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.

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 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 9. Market Gain

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

Box 10a. State (optional)

Enter the two letter postal abbreviation of the state for which state income taxes are being withheld.

Box 10b. State identification no. (optional)

Enter the identification number of the state department, division, or office identified in box 10a.

Box 11. State income tax withheld

Enter the amount of state income tax withheld from the payment reported in box 1.


End of Form 1099-G and Instructions
