I paid a substantial amount of state tax when I filed my 2016 state tax refund. Then I received a very late 1099 which forced me to file amended Federal and state returns. I ended up paying additional Federal tax, but received a small refund from the state; the refunded amount from the state was much less than I originally paid. I have not received a 1099-G for the small refund. But does this mean that I should answer "Yes" to the question, "Did You Get a State or Local Tax Refund in 2016?"?
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No, since you paid a large amount of State Tax, this small refund only reduces that amount.
The net out is that you did not get a refund, but had a Balance Due (that was later slightly adjusted).
No, since you paid a large amount of State Tax, this small refund only reduces that amount.
The net out is that you did not get a refund, but had a Balance Due (that was later slightly adjusted).
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