@ammar_al3ani_93 wrote:
In form 1099-G there is only the state income tax refund amount but for the federal tax withheld is zero.
So are you sure it's for Unemployment? What box is the amount in?
1099G Box 1 is for Unemployment
1099G Box 2 is for a prior year state refund
They get entered in different places.
Enter a 1099G for a State refund
Federal
Wages & Income
Scroll down to Other Common Income
You might need click on Show More to expand the section
Then it's the first line for Refunds Received for State/Local Tax Returns - Click Start or Revisit
You do not want the next line that says Other 1099G Income
A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sales tax. You got a deduction benefit for it so now you have to include it as income. If you took the Standard Deduction it is not taxable and you don't need to report it. Check your 1040 line 12 to see which deduction you took.
