Instructions for the Recipient- This is important tax information and is being furnished to the Internal Revenue Service. If the IRS determines that this income has not been reported and you are required to file a federal return, a negligence penalty or other sanction may be imposed on you by the IRS.
Box 2. The amount shown in box 2 may be taxable on you 2021 federal income tax return if you deducted state and local income tax paid on Schedule A of your 2020 federal return. The Nebraska DOR issued this form 1099-G because you itemized deductions on your Nebraska income tax return and your return calculated an overpayment. DOR reports the overpayment in the year the overpayment was processed and this overpayment may be considered income for federal tax purposes. See the federal return instructions to determine if some or all of the amount is taxable on you 2021 federal income tax return. The amount in box 2 may not match the amount of your actual refund received because of all or some of your overpayment was used to pay for certain items.
