1099-G form for overpayment

Forum|Forum|5 years ago
February 20, 2021
13 replies
60 views

Hello,

I received 1099-G form from the state I live in and say "Overpayment". I am using TurboTax Software and I don't know where to put this 1099-G value. From Personal Income section, there are two areas for 1099-G, which is unemployment section and other income section. If I go "other income", it says "Taxable Grant", "Agriculture program payment", "Market gain on CCC loans", "RTAA payment", "Business or farm tax refund" and I am not sure where this 1099-G goes to because none of categories/sections seem right to me. Can someone help me on this?

TurboTax Home & Biz Windows

LenaH

Employee Tax Expert

If you overpaid your state taxes last year and received a 1099-G, please follow these steps in TurboTax to enter this information:

Open your return.
Search for government payments with the magnifying glass tool on the top of the page.
Select the Jump to government payments link in the search results.
Click Yes for the question Did you have any of these types of income?
Put a checkmark next to State or local income tax refunds.
Click Yes for the question Did you get a state or local tax refund in 2020?
Enter the information about your refund.

The state refund received in 2020 will only be taxable on your federal tax return if you took a federal deduction for paying those taxes in a prior year and that deduction reduced your federal taxes.

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whc8488Author

Level 2

Thank you!

I am confused about two fields. It asked

Total Refund received in 2020
Total of all your payments and witholding

I received refund due to over-payment of estimated tax to my state. Does it mean I fill that amount to the first one (total refund received in 2020). What is the second one (total of all your payment) means?

Thank you

npierson777

Level 10

Total refund received means the amount on the form 1099-G. Total of payments and withholdings - total of your estimated tax paid plus withholdings from your W-2(s) and 1099(s). Please, keep in mind: unless you itemized your deductions in 2019, state tax refund isn't taxable income for you.