1099G - Box2 'credits or offsets State or local income tax returns, credits or offsets'

[lynne-lampinski]

I have an 1099G with Box 2 -'credits or offsets State or local income tax returns, credits or offsets.' It's not consisted with the options presented here.

[hendersonsaram]

Box 2 is for a State Refund from last year.

To enter a state refund just type 1099G in the search box at the top of your return and click on Jump To it.

OR Enter the 1099G under
Federal Taxes Tab
Wages & Income

Scroll down to Other Common Income
      You might need click on Show More to expand the section

Then it's the first line for Refunds Received for State/Local Tax Returns - Click Start
    You do not want the next line that says Other 1099G Income

On the first screen check YES - Received a State Refund.

Enter the amount and continue on and after a couple screens, it will ask you a couple questions to determine if it's taxable. It may or may not be taxable. It is taxable if you itemized deductions the year it is from. If you took the standard deduction it is not taxable. If you filed form 1040A or 1040EZ you took the standard deduction and don't have a schedule A, so the refund is not taxable.