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kristinelise57
Level 3

When entering 1099-G why does it ask for my total payments and withholding?

The only number that affects my taxes is the amount of my refund (the amount on my 1099-G). What does it matter what I paid the previous year? I don't recall TT ever asking for this before, and it's just busywork for me to find and enter it.

1 Best answer

Accepted Solutions
VolvoGirl
Level 15

When entering 1099-G why does it ask for my total payments and withholding?

It has to figure out how much of a state refund is taxable if any.  It should ask you every year.  And starting in 2018 Deductions for state taxes were limited so there is more to calculate for it.

 

A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sale tax.  You got a deduction benefit for it so now you have to include it as income. If you took the standard deduction it is not taxable and you don't need to report it.

 

 

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4 Replies
RayW7
Expert Alumni

When entering 1099-G why does it ask for my total payments and withholding?

You have entered the information in the wrong area.

 

The most common uses of the 1099-G is to report unemployment compensation, as well as any state or local income tax refunds you received that year.  I believe your 1099-G is for state or local income tax refunds. 

 

Delete the information for the 1099-G in the Unemployment section, then enter the form again  per these instructions-

 

Important: If your 1099-G shows an amount in Box 1go here for alternate instructions, as the steps below won't work.

Otherwise, if your 1099-G has amounts in Box 2, follow these instructions:

  1. With your return open in TurboTax, search for 1099–G (don't forget the dash!) and then select the Jump to link at the top of your search results.
  2. This will take you to Did you have any of these types of income? Answer Yes.
  3. On the following screen, check the first box State or local income tax refunds and continue.
  4. Answer Yes to Did you get a state or local tax refund?

You should end up on the Tell us about your refund screen.

kristinelise57
Level 3

When entering 1099-G why does it ask for my total payments and withholding?

I entered the info on the correct screen. As you can see from my screenshot, under "Tell us about your refund" it asks not only for the amount of the refund, but the total of all withholdings as well.

 

 

VolvoGirl
Level 15

When entering 1099-G why does it ask for my total payments and withholding?

It has to figure out how much of a state refund is taxable if any.  It should ask you every year.  And starting in 2018 Deductions for state taxes were limited so there is more to calculate for it.

 

A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sale tax.  You got a deduction benefit for it so now you have to include it as income. If you took the standard deduction it is not taxable and you don't need to report it.

 

 

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kristinelise57
Level 3

When entering 1099-G why does it ask for my total payments and withholding?

Thanks so much for that info. I did take the standard deduction last year, so I'm glad to know this!

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