![]() 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. Therefore, they are income taxes, and any refund, credit, or offset of $10 or more of these taxes is reportable on Form 1099-G. However, you must file Form 1099-G with the IRS in all cases.Ī 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. 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. 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. Taxable grants are reported in box 6 see the instructions below. ![]() This may include payments made under state grant, incentive, subsidy, or other individual assistance programs. Filmmaker incentive credits, home improvement credits paid in low-income areas, and solar panel installation credits are some types of state programs which are generally reportable in box 2, to the extent a refund is paid by the state taxing agency or amount allowed as carryforward credit to the next tax year.ĭo not enter in box 2 payments that are not state income tax refunds, credits, or offsets. These include refunds or carryforward credits of overpayments of tax due to refundable state tax credits and incentive payments that are paid under an existing state tax law and administered by the state taxing agency. State or Local Income Tax Refunds, Credits, or OffsetsĮnter refunds, credits, or offsets of state or local income tax of $10 or more you made to recipients. See the Instructions for Forms 1099-MISC and 1099-NEC for more information.īox 2. ![]() You must also file Form 1099-G for each person from whom you have withheld any federal income tax (report in box 4) under the backup withholding rules regardless of the amount of the payment.Ĭertain amounts that are not reportable on Form 1099-G, such as compensation for services, prizes, and certain incentives, may be reportable on Form 1099-MISC, Miscellaneous Information, or Form 1099-NEC, Nonemployee Compensation. 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. You must also file this form if you received payments on a Commodity Credit Corporation (CCC) loan. 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.
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