Amending federal return with 1099G "state tax refund, credit, or offsets"

[robhenault]

MA collected excess taxes for tax year 2021 and reimbursed the taxpayers. I received a 1099-G to amend my federal return, as I used "taxes paid to states" as an itemized deduction for my federal 2021 return.

I am going through the steps in Turbo Tax and am prompted to define what my 1099-G is for. The closest thing is "refund for farm or business", but this isn't accurate because it is for my personal taxes.

My form itself has box 2 filled out "State or local income tax refunds, credits, or offsets". How do I amend my federal return with Turbo Tax with this information?

[RobertB4444]

Under '1099-Misc and Other Common Income' there are two options to select from for a 1099-G.  The first one says "State and Local Tax Refunds on 1099-G".  That is the one that you should click on.  You clicked the second which says "Other 1099-G Income" and that has all those categories that aren't helping you.

Yours is just a tax refund.  It is for a weirder reason but it's still just a tax refund.

@robhenault 

[robhenault]

Thanks @RobertB4444! I'm using the correct prompts now. However, I've run into another issue. I thought that I would need to amend my 2021 returns to include this payment, but it looks like that isn't allowed in the dropdowns. Should I instead amend my 2022 returns by adding this form? (I unfortunately filed those last night thinking I was done).

[RobertB4444]

You should not amend your return.  Especially if you filed it last night.

You need to wait for the IRS to process the original return before you submit a changed one.  In this case - if the only thing missing from your return is the one 1099-G - then let the IRS deal with that.  Don't worry - they have a copy of the 1099-G as well and they will add it to your return and adjust the refund due to you.

@robhenault 

[robhenault]

Hi @RobertB4444  - just circling back to this. The IRS did not adjust my return. The amount I received is exactly equal to what I see on my tax return, which was prepared without the 1099-G. Should I amend my return at this point and add the 1099-G?