My 2015 state income tax return was intercepted by the IRS. Is it considered taxable income?

It was for taxes owed to the IRS. I received a 1099-G for the amount intercepted. Turbo tax transferred that amount and says its taxable.

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1 Best answer

Level 15

Jun 4, 2019 2:55:42 PM

Yes it is taxable. You would have received it if it had not been used to offset taxes owed to the IRS.

Level 15

Jun 4, 2019 2:55:42 PM

Yes it is taxable. You would have received it if it had not been used to offset taxes owed to the IRS.