topic When entering 1099-G why does it ask for my total payments and withholding? in Deductions & credits

When entering 1099-G why does it ask for my total payments and withholding?

kristinelise57 — Fri, 29 Jan 2021 21:57:42 GMT

The only number that affects my taxes is the amount of my refund (the amount on my 1099-G). What does it matter what I paid the previous year? I don't recall TT ever asking for this before, and it's just busywork for me to find and enter it.

Re: When entering 1099-G why does it ask for my total payments and withholding?

RayW7 — Fri, 29 Jan 2021 22:27:03 GMT

You have entered the information in the wrong area.

The most common uses of the 1099-G is to report unemployment compensation, as well as any state or local income tax refunds you received that year. I believe your 1099-G is for state or local income tax refunds.

Delete the information for the 1099-G in the Unemployment section, then enter the form again per these instructions-

Important: If your 1099-G shows an amount in Box 1, go here for alternate instructions, as the steps below won't work.

Otherwise, if your 1099-G has amounts in Box 2, follow these instructions:

With your return open in TurboTax, search for 1099–G (don't forget the dash!) and then select the Jump to link at the top of your search results.
This will take you to Did you have any of these types of income? Answer Yes.
On the following screen, check the first box State or local income tax refunds and continue.
Answer Yes to Did you get a state or local tax refund?

You should end up on the Tell us about your refund screen.

Re: When entering 1099-G why does it ask for my total payments and withholding?

kristinelise57 — Tue, 16 Mar 2021 16:50:53 GMT

I entered the info on the correct screen. As you can see from my screenshot, under "Tell us about your refund" it asks not only for the amount of the refund, but the total of all withholdings as well.

Re: When entering 1099-G why does it ask for my total payments and withholding?

VolvoGirl — Mon, 01 Feb 2021 20:10:23 GMT

It has to figure out how much of a state refund is taxable if any. It should ask you every year. And starting in 2018 Deductions for state taxes were limited so there is more to calculate for it.

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.

Re: When entering 1099-G why does it ask for my total payments and withholding?

kristinelise57 — Mon, 01 Feb 2021 22:00:18 GMT

Thanks so much for that info. I did take the standard deduction last year, so I'm glad to know this!