1099-G received for 2020 City Taxes, how to enter in TuboTax Business?

[jmoorman]

I have a LLC for rental properties. For the first time, I received a 1099-G with an amount of $28 in Box 2 for the 2020.

How do or where do I enter this in TurboTax Business 2021?

[ThomasM125]

Box 2 on a form 1099-G would be a state tax refund or other state payment. You would only need to report it if is was taxable. 

Since you have an LLC, I assume you are reporting this on a partnership form 1065. If so, you can enter the income as Other Income on line 7 of form 1065. You can use the Forms mode to bring up form 1065 p1 - 3 and enter the income directly on line 7 along with a description of the income.

[jmoorman]

Thomas,

Thank you. I am assuming it is taxable. It is from the city where the LLC is based. It was issued by the city's income tax department. I paid estimated tax last year. I guess it could be a credit for overpayment?

This year the expenses were larger than the income, and with depreciation on several improvements kicking in this year, I do not owe any tax to the city.

To confirm, I do file the taxes on a form 1065.

Thank you...

[KrisD15]

Yes

State and City refunds may not be taxable if they were never deducted the tax in the first place. 

Individuals who use the Standard Deduction don't file Schedule A and so do not deduct state tax, therefore do not need to report a State Refund. 

Businesses deduct all expenses, including taxes paid;  therefore, a State refund IS reportable income for the year it is received. 

[jmoorman]

Thanks Kris...

I have decided to report. I know it may be the wrong way of thinking for a conservative American, but I don't see the need to fuss over $28. I mean, what are the taxes on that really when I have a $4000 loss for the year?

Thanks all of the guidance. This crap gets harder and harder every year.