INSTRUCTIONS : DISTRIBUTIONS FROM (Form 1099-R)
Form 1099-R is a United States Internal Revenue Service tax form used for reporting employment income other than salary and wages. It is primarily used for payments from pension funds, annuities, retirement, or profit sharing.
The Form 1099-R can be obtained through the I.R.S’ website or by obtaining the documents through a local tax office.
The form is to be filled out and submitted by the employer on behalf of the employee receiving the income. There are three copies of the form, a red form which is to be submitted to the IRS and a copy for both the employer and employee.
1. The employer or payee must put their name and contact information in the upper left box.
2. Below the contact information, the payee must put their federal identification number as well as the identification number of the employee receiving the benefits.
3. Below, put the recipient of the funds name and contact information in the appropriate boxes.
4. For box 1, at the top of the form, put in the gross distribution of funds covered by the Form 1099-R and the amount that is taxable, if any, in box 2.
5. If the amount includes any capital gains, enter the amount in box 3.
6. If any federal income tax has already been withheld from the amount stated, enter the amount withheld in box 4.
7. If the employee has contributed to a qualified Roth IRA, enter the amount contributed in box 5.
8. If the employee has unrealized gain in the employer’s securities, enter this amount in box 6.
9. Enter the distribution codes in box 7 and any additional income in box 8.
10. Enter the total distributions percentage and employee contributions in box 9.
11. For boxes 12, 13, 15, and 16, enter the state and local taxes withheld for the payments covered by your Form 1099-R.
12. Put the state and local distribution amounts in both boxes 14 and 17.
13. Once the Form 1099-R is complete, it is ready for submission to the IRS. Submit the red copy while retaining one copy for yourself and providing the employee the third copy.
