1099-G form for overpayment

[whc8488]

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?

[LenaH]

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

1. Open your return.
2. Search for government payments with the magnifying glass tool on the top of the page.
3. Select the Jump to government payments link in the search results. 
4. Click Yes for the question Did you have any of these types of income? 
5. Put a checkmark next to State or local income tax refunds. 
6. Click Yes for the question Did you get a state or local tax refund in 2020? 
7. 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. 

[whc8488]

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

[npierson7]

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.

[whc8488]

I am new to all this. I don't think I itemized deduction. I simply estimated quarterly amount myself and paid before each deadline hits. In that case should I put the amount I overpaid to "Total refund received" and 0 for total of payments and withholding?

Thank you for all the help

[MaryM428]

Contact your state department of revenue and find out what this 1099-G was issued for.  Then we will be able to advise you on how to enter it correctly in TurboTax.

[Tjbaron]

I have the same issue.  It is not a refund, it is a repayment from overzealous prepayment. We have received a 1099-G, which means we better report it, yet Ttax offers us no means to accurately do that.  Like the above person, I did not itemize, but took the standard deduction, so under no circumstances should this $ be taxable.  We are just afraid that if the software is not  smart enough to clearly guide us through this common issue, then it may mistakenly declare it to be taxable income.

We would feel much better if it was fixed to offer an “overpayment” check box option.

[CatinaT1]

In the tax world, overpayment and refund are interchangeable. They are refunding your overpayment, or your overpayment is being refunded - whichever way you prefer. 

This is only taxable (and sometimes not all of it) if you itemized the year before and used a state taxes paid deduction. If you did not itemize in the prior year, you don't have to enter it.

However, if you do enter it, TurboTax is smart enough not to tax it. You will see it as a reported item but not a taxable item.