1099-G Colorado State Income Tax Refund

Forum|Forum|4 years ago
February 5, 2022
2 replies
14 views

I just received a 2021 1099-G for my State Income Tax refund. The amount in box 2, "State Income Tax Refund" does not match what I claimed & received in the tax year of 2020. The state it is for is Colorado. The amount is off almost $300. How can I get this corrected, or should I even worry about it? Thank you!

TurboTax Deluxe Online

Best answer by RaifH

Whether or not you should worry about it depends on if this is taxable income in 2021. If you itemized your deductions in 2020, you may have to report this Colorado state income tax refund as reportable income in 2021. To report this income:

Select Federal, and then Income & Expenses.
Select Other Common Income then select Refunds Received for State/Local Tax Returns.
Follow the screens to enter your 1099-G information.

After entering the information on the screens, even if you did itemize your deductions, there is a chance that the refund will not be taxable income this year. However, if it is, and you feel the information reported on the form is not accurate, you can contact the state to try to issue a corrected form.

RaifHAnswer

Level 10

Select Federal, and then Income & Expenses.
Select Other Common Income then select Refunds Received for State/Local Tax Returns.
Follow the screens to enter your 1099-G information.

rossndarla

Level 2

My question is not if I should report my state tax refund, it is what value I should report on my federal return. My 1099-G from Colorado contains an amount of $1353 in box 2. This is $136 less than what my actual state refund of $1489 was last year. The difference is due to a "Modified AGI Tiers for State Sales Tax Refund". Which amount do I enter on my Federal return $1353 from the 1099-G or $1489 from last years tax form?

Thanks,

Ross

RobertB4444

Level 15

Enter the amount from the 1099-G.

@rossndarla

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randoodle

Level 3

The amount reported on the 1099-G is often different from what was refunded to you by the Colorado Department of Revenue. What was refunded to you included the TABOR refund, which is not included in the 1099-G amount.

TurboTax will often use last year's refund and put that as the 1099-G amount for the current tax year. You need to override this with the value that is on the 1099-G.

jaked2332

Level 2

do you know if I should also override the "payments and withholdings" amount? TurboTax autofilled this to the subtotal before AGI for TABOR.

KrisD15

Level 15

I think you are asking about something different than the questions in this thread.

If you're entering a 1099-G for a state refund, first, if you used the standard deduction on your prior year Federal return (Tax Year 2024) the state refund is not taxable, don't even enter it.

If you DID Itemize Deductions on your Tax Year 2024 Federal return, look at your Schedule A to find state tax withheld and check your tax documents for withholding, such as your W-2.

If you still have questions, I suggest you start a new question thread.

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