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Solved

1099-G for 2024 can't be entered

Forum|Forum|1 year ago
January 19, 2025
3 replies
0 views

I have an OK 1099-G for year 2024 because of the Parental Choice Tax Credit. However, Turbotax only allows me to enter a 1099-G for years 2023 and earlier. What do I do with this 1099-G?

Best answer by DawnC

While I can "force" the program to recognize the 1099 income using this area of turbotax, I'm not convinced that is the correct answer. The only way to add the 1099 income here is reporting it as income in one of the boxes other than box 2. However, this 2024 1099-G is clearly reporting the income in box 2....

You don't enter it on the 2024 tax return. And if you do end up itemizing in 2024, you will enter it on next year's tax return. Please disregard my previous message, as I see now, the Other 1099-G option was already well covered, my apologies.

SabrinaD2

To enter your Oklahoma 2024 1099-G for the Parental Choice Tax Credit in TurboTax Online, follow these steps:

Sign in to TurboTax Online and open your tax return.

Navigate to the "Federal" section by selecting "Tax Home" from the left-hand side menu or from the main dashboard.

Select "Income & Wages" or "Income" and look for the option to select forms or income like "1099-G."

Search for "1099-G - Other " in the search bar or scroll down to find the category labeled "Government Payments" or similar.

Return to the "Income" Section and Scoll to the the 1099G - Other forms

Enter the details from your 1099-G form:

Select "Unemployment and Paid Family Leave" or any applicable section that fits the Parental Choice Tax Credit (it may ask for details about other credits).
Manually input the information listed on your 1099-G form, including the amount of the credit and any additional information provided (e.g., state tax withheld).

Once reported the Oklahoma Parental Choice Credit via the 1099-G on the federal side, follow these concise steps in TurboTax for the state return:

Go to Oklahoma State Return: Open the state section in TurboTax.

Find Credits: Navigate to the "Credits" section.

Locate Parental Choice Credit: Search or scroll to find "Oklahoma Parental Choice Credit."

Confirm Details: Verify or enter your information related to the credit (tuition, school details, etc.).

Complete the Return: Review, and TurboTax will apply the credit to your Oklahoma return.

srtaylor1317Author

Employee

It sounds like your point is that it is appropriate to mis-record the tax refund as a taxable grant or similar government payment. However, the 1099-G I received shows the amount in box 2 and is a state tax credit. And if I look at the Turbotax forms view, I can see that box 2 of a 1099-G is specifically reserved for state tax credits, but only years 2023 and older. Are state tax credits handled the same **everywhere** as taxable grants? TurboTax really just needs to update the form to allow 2024 state tax credits to be entered.

AmyC

Employee

Thank you for the additional information. Since the form is showing the credit, then you do not enter it in the federal. Simply claim the credit in the state portion as an OK adjustment.

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KrisD15

To clarify, do you have a question or are you simply sharing information?

@Bi11iard

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Bi11iard

@KrisD15

It is more to share information and to clarify what the tax experts have posted, which is conflicting information. This is not a taxable grant. The Parental Choice Tax Credit (PCTC) is not a tax refund. It is not income. This is a tax credit, paid to the school, not to the individual. I contacted the Oklahoma Tax Commission, and they confirmed to me that this is NOT reportable on my state income tax. I also fail to see where this would ever be reportable on a Federal return, even if you did itemize.

srtaylor1317Author

Employee

It’s an odd situation, but basically the rules of tax credits are that they CAN be federally taxable IF you itemize in a particular year and deducted that year’s withholding from your income (when you itemized).

Basically this ensures money that you deducted from federal taxes is added back to your income in a later year if you get it back from the state.

what is “odd” is that you could end up being taxed for a far larger amount than you ever had withheld in the first place. Basically, this is a byproduct of the legislature wanting to use the language of tax credits instead of education savings accounts. Having spoken with a number of people involved in the original legislation, I can assure you this is an unintended consequence, and not by design.

if the IRS confirms that this is federallytaxable in the future, it will change the calculus of whether or not people who itemize should take the state income tax or state sales tax as a deduction. Happy for the experts to correct me if I am miss-stating anything here.

DaveF1006

No. If you didn't itemize deductions in 2023, the 1099 G isn't reportable income on either your federal or state returns.

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jessicawright

What if you did itemize on your 2023 tax return? Is the full amount taxable or just the amount equal to the 2023 state tax itemized amount? How do you enter it into TurboTax?

MayaD

If all three of the following are true, your refund (or part of it) counts as taxable income:

You itemized deductions last year, instead of taking the standard deduction.
You claimed state and local income taxes (not general sales taxes).
Claiming the deduction helped you increase your federal refund or lower your tax bill.

When you enter your information and answer the questions, TurboTax will calculate the taxable amount.

If you transferred last year’s tax data to this year's return, your state and local refunds are automatically brought over with your other tax info.

If not, enter your 1099-G form: