What is the difference between 1099R and 1099G forms in regards to the estimated tax responsibility?

Answer 1

It depends how much federal tax has been withheld. Contrary to the previous answer, it is possible for both forms to have tax withheld. The 1099R relates to retirement account payments and the 1099G is most commonly used to report unemployment compensation. In that sense, the 1099G will be taxable in full. The 1099R may be used to report rollovers between retirement accounts, so none of it may be taxable. The trick is to look at Box 2 and to understand why the form has been issued, in case the insurance company has been lazy and merely replicated Box 1 (or if, indeed, the insurance company does not have enough information to compute the taxable element).

If you do not fully understand any 1099R you receive you should seriously consider engaging a CPA or Enrolled Agent, especially if the amount in Box 1 or Box 2 is significant.

Answer 2

1099R-For pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

1099G-Certain Government Payments

Both of these payments have not had taxes withheld from them. Seeking the advice of a CPA is suggested...they can figgure your ES (Estimated Tax) based on previous years and supply you with vouchers and envelopes.

Typically you can expect to pay 25% of the total in state and federal taxes.