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?
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.
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).
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.
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?