Question

I received a 1099-G form that only has boxes 2

Forum|Forum|5 years ago
February 23, 2021
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I received a 1099-G form that only has boxes 2 and 3. The bottom of the form says to fill out a 1099-INT, but this form states it is a 1099-G. There is a statement at the top in caps and bolded stating "Important Tax Document. This Form is for your records - Do Not attach with your tax return." So do I do anything with this form at all? This whole form seems like its contradicting itself.

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VolvoGirl

Employee

That sounds like for a state refund you got in 2020 for your 2019 return. Did they also pay you interest on it?

A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sales tax. You got a deduction benefit for it so now you have to include it as income. If you took the Standard Deduction it is not taxable and you don't need to report it.

You need to check your 2019 1040 line 9 to see which deduction you took. How much is on line 9?

If you filed the Free Edition last year you took the Standard Deduction and the state tax refund is not taxable and you don't have to enter it.

Then you do have to report any interest the state paid you on it.