Form 1099-G reflects state refunds calculated for previous tax years. You have not completed your 2020 state income tax return so it can't be your 2020 state refund amount. Since you received the refund in 2020, it's included as income on your 2020 income tax return and may be taxable.
- You are a cash basis taxpayer. Under the cash method, income is not counted until cash (or a check) is actually received.
- Per the IRS instructions for form 1099-G, Box 3: Box 2 Amount Is For Tax Year: No entry is required in box 3 if the refund, credit, or offset is for the 2019 tax year. If it is for any other tax year, enter the year for which the refund, credit, or offset was made.
- See Do I need to report the state or local refund I got last year? Is it taxable?
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