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Returning Member
posted Feb 27, 2026 10:16:07 PM

1099-g

I have a simple NJ return. Last year I received a state refund of $123. The amount in box 17 was $123.45.

 

This year the amount in box 17 is $161.52 which was rounded up to $162. Turbo tax keeps auto-adding a 1099-G form with the $123 and when i see the breakdown, it shows the $123 as taxable income and is being deducted from the $162, which gives me a state refund of $39. I chose the standard deduction. When I looked it up, it said if i chose standard deduction in 2024, my state return should not be considered taxable income but it seems that it still is being considered taxable income. I have completely cleared the form and reentered all my information and nothing changed.

 

Can anyone tell me if this is correct or not? and if not, how do i fix it?

0 11 1021
11 Replies
Employee Tax Expert
Feb 28, 2026 8:15:24 AM

Yes. Since you did not itemize your deductions in 2024, you can keep the form in your file and do NOT enter it into your tax return for 2025. It is not taxable and  will have no affect on your total tax. If you need to delete it again use the link based on your TurboTax program. Delete all 1099-G forms.

  • If you're using TurboTax Online software and need to delete a form, click here.
  • If you're using TurboTax Desktop software and need to delete a form, click here.

Returning Member
Feb 28, 2026 8:36:34 AM

Thank you for your reply

 

I deleted the form twice. And I cleared my entire return twice and re-entered my info manually and right after I enter my W-2 income info, Turbo Tax Automatically adds that 1099-G back into the income section.. I click the delete button next to it but it stills transfers over to the State return.

Employee Tax Expert
Feb 28, 2026 9:45:45 AM

No. It does not sound correct. If you chose the standard deduction, then the software should calculate a zero taxable amount.

 

You can go back and review the questions to ensure you are indicating that you took the standard deduction, or you can delete the Form 1099-G and choose not to report it, because taking the standard deduction means you do not need to report this as income on your tax return.

 

To delete the Form 1099-G, do the following:

 

  1. Go to Tax Tools on the left panel within TurboTax, then Tools, then Delete a form
  2. Find the 1099-G entry and the State and Local Tax Refund Worksheet and delete both

Returning Member
Mar 1, 2026 1:45:50 PM

Thanks for your reply

 

As stated in my previous reply, I have already tried deleting form 1099-G twice. I also cleared my return and re-entered my info manually twice. Nothing changed.

Employee Tax Expert
Mar 1, 2026 1:55:37 PM

Can you please clarify where are you seeing the income show up as taxable?

Returning Member
Mar 1, 2026 2:17:27 PM

@SusanY1 

I hope you can see it. Where it says Taxes, under it says NJ Income tax $123.. That amount is the same as the NJ refund I got last year. That amount is also on my 2024 w-2  in box 17. My 2025 w-2 shows $161.52 in box 17 which was rounded up to $162. I do not know if this correct. Are they treating the $123 as taxable income?because I chose the standard deduction last year and this year.

 

 

 

 

20260301_170318.jpg

Employee Tax Expert
Mar 1, 2026 2:25:55 PM

This is just a summary screen of your entries (or items carried over), it doesn't mean the income is taxable.  You can see if it's being treated as income by taking a look at your 1040. To do that, go to the panel on the left side of the screen and click on tools, then tax tools.  Then you can scroll down to "Preview my 1040". 

The $123 is your calculated state tax, and the $162 is the money that was withheld from your pay during 2025 and will be used in calculating your refund (or tax due). It's your "payment" already toward your state tax.  Your refund is the difference between the two.

 

[EDITED 03/01/2026 3:09PM PST]

Returning Member
Mar 1, 2026 2:56:57 PM

@SusanY1  Thank you

 

I still don't understand why the $123 is being deducted from the $162. I do not remember that being done last year but I do not see the $123 on my 1040.

Employee Tax Expert
Mar 1, 2026 3:01:55 PM

The $123 here is your calculated tax for 2025 (I believe I misread the screen the first time.)  If that's the same as the number on your 1099-G it's a coincidence. (An odd one, though!) 


If the $123 were income, it would be federal income.  Here this is the summary of your overall tax due to your state ($123) and then it shows your payments of $162.  Your refund is correctly the difference between those two numbers. 

Returning Member
Mar 1, 2026 3:12:29 PM

@SusanY1 

 

That is why I got confused. The $123 is the exact amount of the state refund i got last year.

 

Should I have received a 1099-G form? Because I have not received one.

 

 

Employee Tax Expert
Mar 2, 2026 9:52:39 AM

It's okay if you didn't get the form, since TurboTax carried the refund amount over from last year (and it isn't taxable income anyway.) 

That number being exactly the same would confuse anyone!!