Tax Year Prior to 2020: 1099-G State Refund

[jsloss24]

I did my taxes a bit too early (first time on my own!) and I just received a 1099-G in the mail for last year’s state tax refund. I did not put that into Credit Karma when I did my taxes. My mom says that I have always taken the standard deduction because I have been a student up until this year and I have never made very much money. Do I need to amend my tax return since I didn’t put the 1099-G state refund amount into Credit Karma? Or would it have cancelled it out anyway because I took the standard deduction?

[DawnC]

In your situation, it is not taxable.  Keep it with your records.  If all three of the following are true, your state 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

[jsloss24]

Okay, great. So just to make sure, I do NOT have to amend my return?

[JulieS]

If you always took the standard deduction, you don't have to report your state refund and you do not need to amend. 

[jsloss24]

Thank you both SO much! Next time, I will just remember to input the state refund into the software for my own peace of mind. 

[jsloss24]

So now, I just received a 1099-INT for interest on my HSA account. It’s only about $10. Do the same rules apply to this?

[WKins2]

No, unfortunately they do not. You will need to report the 1099-INT on your state return, it is not taxable on your federal return.

If you already filed your return you will need to wait to see if it was rejected or accepted. If they were rejected, you are able to login to your return to correct the errors that caused the rejection and then re-file your return. If your returns were accepted, then you will need to file an amended return. You should not try to amend your return until the original return it has been fully processed and you have received your refund or your payment has cleared.
 

Amended returns do not “catch up” to your original return and replace them; they are processed as two separate returns.  Amended returns have to be printed and filed by mail.  It can take the IRS up to 12 weeks or longer to process them.   If you are due a larger refund than on your original return, your amended return should only show the difference and you will receive a separate check for it.  If you owe money on your amended return, it will show only the new amount owed, you will have to mail a check with the return.

You can check the status of your amended return by clicking here: https://www.irs.gov/filing/individuals/amended-returns-form-1040-x-/wheres-my-amended-return-1

Click here for amending instructions: https://ttlc.intuit.com/replies/3288565

[edited 1/31/2020 at 10:48am]

[jsloss24]

OK, what if the amended return isn't fully processed until after April 15th? Do I get penalized for paying the difference after that date?

[WKins2]

When you file your original return AND pay any taxes owed on or before 4/15/2020. If when you do your amended return you find that you owe additional taxes, you should try to mail both the amended return and the amount owed in on or before 4/15/2020 to avoid any additional penalties and interest. 

If when you file your amended return, you now are due a refund, you do not have to mail your amended return in on or before 4/15/2020. 

[jsloss24]

OK! I am not familiar with the 1040X AT ALL (obviously!), so when I calculate the difference in tax, it will show me the difference in my refund, as well, I would think? So, since I was told to send the amended return AFTER getting my refund, do I just send the difference in the amount of my refund with the amended return?

[DeanM15]

The 1040 X will calculate the amount you owe, after any refund you received or payments that you made. 

You can see the calculation on the form, in boxes 18 through 21 on Form 1040X. For more information about amending your return, see here.

[jsloss24]

Thank you all!!