Amount on 1099-G is higher than actual refund due to Oregon surplus credit ("kicker"); how do I report this?

[tax_slave_in_oregon]

Here is the situation using specific but made up numbers: I received a 1099-G for tax year 2017 from the State of Oregon that shows $200. The actual refund I received in 2018 was $150. This is because the 1099-G form shows the full amount of Oregon surplus credit ("kicker"). The credit was automatically applied to my 2017 tax return and decreased my tax liability, thus turning a $50 tax bill into a $150 tax refund.

Turbo Tax is aware of all of this as I did my taxes in TT last year and I imported last year's tax return into TT2018. As a result, it automatically includes the actual refund amount, $150, in the calculations.

AFTER THAT it asks me if I received a 1099-G form; how do I answer this question? I am hoping the answer is "no" as the $150 already included covers everything -- but I don't actually have a 1099-G form with $150 printed on it, the 1099-G form I have shows $200.

If I do need to separately enter the 1099-G for the surplus credit, what "type" should I select? There are five options (Taxable grant, Agricultural program payment, etc.) and none of them seem applicable.

Please don't quote the answer that says "it doesn't matter if you don't itemize" -- I did itemize my deductions!

[Cindy0H · Accepted solution]

Yes, you do need to enter the 1099G with the full amount. It is entered under state refunds:

• Federal 
• Income & Wages
• Other Common Income
• State and Local Tax Refunds

You can also enter that you paid state taxes ($100) for 2017. Here's how:

• Deductions & Credits
• Estimates & Other Taxes Paid
• Other Income Tax
• Balance due on your 2017 state taxes paid in 2018

[mpweis]

This is exactly what I was looking for. However, when I entered the taxes paid amount in section Deductions and Credits (mine different), my overall Federal Refund amount didn't increase. I expected it to increase to the value that was calculated when I entered the actual OR state refund amount in section Income and Wages, rather than the larger kicker refund amount.

[rlfeuer]

I concur with the above comment in that there is a problem with Turbo Tax software.

[mail-seetharam]

Did you enter the number in the 1099-G form or the actual refund you obtained when Turbotax asks for Total Refund Received in 2018?

[rlfeuer]

I entered the actual number in the 1099.G which was the kicker amount.  I actually owed state income tax.  So I did not receive a refund in 2018.