IRS 1099-G for 2020, box 2 for Interest Paid on Tax Refund. Where to enter it?

[snoskiur]

Hello!  I am doing my son's 2023 taxes and he has a 1099-G/1099-INT from 2020 we received from the IRS.  The form says it TAKES THE PLACE of 1099-G/1099-INT.  Box 1 is empty and there is an amount in Box 2 for Interest Paid on Tax Refund.  I cannot find where to enter this.  When I follow other's input from here, it says to go to the form, but the form doesn't clearly answer where to put it either.  

Thanks!

[AmyC]

Enter the form as a 1099-INT with the IRS as the payor. Enter the interest received in box 1 for interest received.

Reference: Form 1099-INT

[snoskiur]

Thanks, but I don't think that actually addresses my situation.  I have zero in Box 1 and I have an amount in Box 2 for Interest Paid on Tax Refund.  I didn't receive interest, so far as I know.

[DianeW777]

It depends. The IRS or the state would include interest in your check of you received a refund from your 2020 tax return in 2023.  They are required to pay interest when a refund is due on a tax year and the payment of that refund is paid late.  If you received a form from the IRS for interest paid to you, then you must report it on your tax return as interest income.

You would have to check with your state to see when they would include interest with a refund of income tax.

• How do I contact my state Department of Revenue?

When does the IRS pay Interest?

Stop and Start Dates for Overpayment Interest

In general, we pay interest on the amount you overpay starting from the later of the:

• Tax return filing due date
• Late filed tax return received date
• Date we get your return in a format we can process
• Date the payment was made

We stop paying interest on overpayments on the date we refund your overpayment (and interest) or offset it to an outstanding liability.

Exception: We have administrative time (typically 45 days) to issue your refund without paying interest on it.

@snoskiur 

[snoskiur]

Thanks... Well, it's only $12.50 or so and it's from VA Dept of Taxation (not the IRS as I said, sorry).  It's my special needs son's taxes I do for him and I don't recall him ever getting a refund late.  I guess the important part I'm looking for is where do I enter that Box 2 info for TurboTax?

[BillM223]

As Amy said, just pretend that you got a 1099-INT, with the "Received from" being the VA Department of Taxation, and the interest being the amount reported as interest on the 1099-G/1099-INT that you said that you received.

[andersn2234]

TurboTax Deluxe desktop.

I have the exact same problem but for 2023.

I received a form that "takes the place of Federal Forms 1099-G and 1099-INT".

TurboTax Deluxe desktop.

I have the identical problem but for 2023.

Box 1 has 0.

Box 2 (Interest paid on Tax refund) has an entry I need to enter.

As suggested, I went to the TurboTax Deluxe page titled:

"Here's the interest we have so far"

and added a new entry with "Virginia Department of Taxation" in the recieved from box.

Added 0 in Box 1 of the TurboTax screen.

Added the amount in Box 2 of the TurboTax screen.

Saved.

But, the

TurboTax Deluxe summary page titled "Here's the interest we have so far" shows

0 in the interest column.

Another TurboTax mistake? What to do?

Should I re-enter the amount from box 2 in  TurboTax's box 1?

[RobertB4444]

Yes.  Re-enter the amount from box 2 in the box 1 of the interest form. 

@andersn2234 

[snoskiur]

I appreciate the reply, but again it doesn't seem to address my question.  It seems you're saying to report what is in Box 2 as Interest Paid in in TT where it asks for what is in Box 1, which would be zero.  Why would TT ask me to fill in a form incorrectly?  

[snoskiur]

I agree... there is no option for Box 2 there and I feel I'm doing it incorrectly if I arbitrarily put what is in Box 2 in Box 1, which is clearly a different figure.

[snoskiur]

I think my confusion is you're talking about Interest Received.  My box two doesn't say Interest Received, it says Interest Paid.  So what I received and what I paid shouldn't go in the same box, correct?

[BillM223]

First, you all need to read what the State of Virginia says about this form - it will answer many of your questions. You can also see a sample form at this Virginia Department of Taxation webpage.

The reason that there has been so much confusion is because the State of Virginia just made up this form in the last couple of years. For this reason, TurboTax does not have explicit input screens for it.

On the 1099-G/INT, box 1 is the same as box 2 on the 1099-G, i.e., the state tax refund.

On the 1099-G/INT, box 2 is the same as box 1 on the 1099-INT, i.e., interest income, whether it was received by you or paid by the State of Virginia - in any case, it is to be added to your income as if it were stand-alone 1099-INT.

Remarkably, the State of Virginia states, "To avoid the confusion that may be caused by sending multiple statements for the same tax year, we issue a single statement showing separate refund and interest amounts." One could well wonder if they succeeded.

Now that you know this, please go back and read our responses above and see if you can enter your form correctly.

@snoskiur 

@andersn2234 

[JL Hut]

• This is typical TurboTax crap, get used to it. State of Michigan and other states have the same 1099-g interest box also. Intuit pretends they don't exist and has no place to enter the interest on their G input form. This is the second time this year, tax year 2024 I've run into problems like this. Where you have to come up with a workaround or to get things like this entered in the right form. It's TurboTax its fault,, they have staffs of accountants and CPAs, maybe it's the coders fault, I don't know but you keep running into these things where you have to find workarounds because their input forms won't allow you to input things like 1099-g interest  that you are required for years  to be reported.
• So, that's my rant, just enter it on your B form interest, with all the other interest income you received on a separate line. . Or on their interest income box 1 input.  

[DoninGA]

@JL Hut On the TurboTax unemployment section for entering a 1099-G.  Simply select the box Federal or state income tax was withheld on this payment.  The following screen has entries for the taxes withheld.

Checked back 10 years to tax year 2014 and the same information was included as in 2024.

[JL Hut]

DoninGA, I dont see how that input form you displayed ( enter any withholding)  applies to what we are talking about.  The 1099-G  interest paid to me from a government for a Refund they held for an extended time and owed me interest.  We are reporting interest paid to me from the government on 1099-G .  It has nothing to do with Withholding.