Interest paid received on 1099-G local where do I report it on Federal Form?

[DawnC]

What box is the income in on your 1099-G?   

[jasongoblue]

Box 2

[VolvoGirl]

Box 2 is a state tax refund.   To enter a state refund just type  1099-G (with the dash)  in the search box at the top of your return and click on Jump To it.

OR  Enter the 1099G under

 Federal on left

Wages & Income at top

 Scroll down to 1099-Misc and  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

     You do not want the next line that says Other 1099G Income

On the first screen check YES - Received a State Refund.

Enter the amount and continue on and after a couple screens, it will ask you a couple questions to determine if it's taxable.  It may or may not be taxable.  It is taxable if you itemized deductions the year it is from.  If you took the standard deduction it is not taxable. If you filed form 1040A or 1040EZ you took the standard deduction and don't have a schedule A, so the refund is not taxable.

INTEREST

Then enter the interest like a 1099Int and put the amount in box 1.  

Enter a 1099-Int  under

Federal or Personal for Home & Business

Wages & Income at top

Interest and Dividends

Interest on 1099INT - Click the Start or Revisit button

Put the interest amount in box 1

[DaveF1006]

To report:

1. Go to wages and income
2. 1099 MISC and other income
3. Other 1099 G income

[jasongoblue]

1099-G, software requires Business or farm tax refund.  It is neither, but personal.

Software requires setting up a business if such is selected.

[jasongoblue]

Ahhh, instructed to add it to the State Refund amount.  It does not require an additional line item.

TurboTax imported the refund from prior year, so add interest to that number.

[VolvoGirl]

What?  If it’s asking why you got a 1099G you are in the wrong place.  Delete out of this one.

To enter a state refund just type  1099-G (with the dash)  in the search box at the top of your return and click on Jump To it.

The amount is in box 2.  That is for a state refund you got in 2024 for your 2023 return.   It goes on your 2024 tax return.  But you might not need to enter it at all.

Enter the 1099G box 2 under

 Federal on left

Wages & Income

 Scroll down to 1099-Misc and  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

     You do not want the next line that says Other 1099G Income

On the first screen check YES - Received a State Refund.

But you might not need to enter it at all.  

Is it for a state tax refund you got in 2024 for your 2023 or prior state return?  Is the amount in box 2?  You may not need to enter it.  Did you take the Standard Deduction on that year federal return?

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 sale 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.