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Level 2
posted Feb 18, 2023 12:19:18 PM

Where do I enter 1099-G income from a 2022 local tax refund, in the desktop app?

When I try to enter my 1099-G, box 2 income ($17, from 2022) from a local tax refund, there are 5 options to select (taxable grant, ag program pmt, market gain on CCC loans, reemployment trade... pmt, business or farm tax refund).  None of these apply to a local tax refund. If I try any of those 5 the follow up questions do not apply to this situation.

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1 Replies
Expert Alumni
Feb 18, 2023 12:36:00 PM

It is not necessary to report the amounts in box 2 of the 1099-G if, in the previous year, you:

  • did not benefit from deducting state income tax, or
  • took the standard deduction instead of itemizing your deductions.If your 1099-G has amounts in box 2, follow these instructions:
  1. Go to Form 1099-G and answer Yes
  2. Answer a few more questions about your refund until you get to the Tell us about your refund screen
  3. Enter your total refund received in 2022
    • Enter the amount in box 2 (state or local income tax refunds, credits, or offsets)
    • If you received multiple 1099-Gs for the same state or locality, both with the same tax year in box 3, enter the box 2 sum
    • For example, you received two 1099-Gs from Colorado. They both have 2022 in box 3, and their box 2 amounts are $1,000 and $800 respectively. You'd enter $1,800 in Total refund received in 2022
  4. Enter the total of all your payments and withholding
    • Enter the total taxes you paid to the state or locality for the same tax year as the refund (this includes withholdings as well as estimated tax and other payments)
    • You can get this amount from your state or local tax return for the tax year of the refund. Look for a line near the bottom, often bolded, that includes the phrase total payments
  5. Enter the tax year of refund, which is box 3 of your 1099-G