1099G Form

[SG07]

Hi all. I moved away from Rhode Island and received a 1099G form in the mail with a tax refund. When I add it in TurboTax it labels it as a “pass-through” entity. Am I entering this incorrectly?

[MayaD]

You should report form 1099-G in the federal section:

1. Sign in to your account and open the Wages & Income section of your return
2. On the Your income screen, select Add more income
3. Look for the Other Common Income section and select Show more
4. Select Start on the Refunds Received for State/Local Tax Returns section
5. Enter your refund amount

If all three of the following are true, your refund counts as taxable income:

• You itemized deductions last year, instead of taking the standard deduction
• You claimed state and local income taxes (not general sales taxes)
• Claiming the deduction helped you increase your federal refund or lower your tax bill

 It depends on how much the deduction affected your refund or tax bill. Just answer a few simple questions about last year’s refund, and we’ll calculate the taxable amount for you.

Do I need to report the state or local refund I got last year? Is it taxable?

[SG07]

@MayaD Thank you! Very helpful. I called the Rhode Island Division of Taxation and they said it does not need to be added on my return because I take a standard deduction, whereas if I itemize I would need to.  Does that sound correct or do I still need to add it anyway?

[AbrahamT]

Remember, only if you itemized last year, you would be taxed on it. The program would ask you that when you enter the 1099G information as follows.

 

Also, see HERE  and scroll down to 1099-G box 2 Example  for a detailed explanation of how this works.