Question
Should I file this 1099-G on my federal return? It incorrectly shows I received a state refund last year.
I received what I believe is an incorrect 1099-G for Massachusetts. It indicated I received a state refund of $344 because last year when I filed my return I initially received a refund of $344. However, I later amended/corrected my state return and found that I actually owed $59. So I ended up writing a check back to the state for $403 ($344 refund paid back + $59 owed).
So my question is, do I still need to include this 1099-G in my federal return, pay federal taxes on the $344, even though I did not really end up with the refund listed on it?
