I have a 1099g from a state tax return. Turbo Tax is asking me what kind of payment it is and I don't see any that fit tax return. Do I select business and farm?

[Cattlerancher · Accepted solution]

You are entering your 1099-G in the wrong place under Other Common Income. Use State and Local Tax Refunds on a 1099-G.

[JohnR1]

Form 1099-G is used to report different things, including state or local tax refunds, unemployment compensation and paid family leave.

If state or local tax refunds were made to you, reported in Box 2 of Form 1099-G, you only need to include in your 2016 federal return the state and local tax refund(s) from 2015 (or a prior year), if you had taken a deduction on your federal return for paying those state or local taxes in 2015 (or a prior year). Box 3 of Form 1099-G will indicate the tax year to which the refund(s) relate.  The itemized deduction for state and local taxes paid is claimed on Form 1040 Schedule A Line 5a, State and Local Income Taxes.

To enter your Form 1099-G information for state or local tax refunds into TurboTax, please see the folllowing TurboTax FAQ, "Where do I enter a 1099-G for a state or local tax refund?":

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