For 2019, the retirement payment was indeed reported on a 1099-R and entered as such on my state and federal returns for that year. Two years later, I learned that this payment should have been exempt under the so called Bailey Case under NC law. So I filed an amended return and did indeed receive a refund of the NC tax I paid back in 2019. I received that refund in 2021 and it was that refund that is now being reported to me (and the IRS) on a Form 1099-G. I hope that answers your question?
