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Level 2
posted Feb 5, 2021 9:50:27 AM

1099-G

I received a 1099-G from the state of Hawaii as a Non-resident for the sale of my home in Hawaii. Total sale price $405000.00 Non-resident tax 7.25% of the total sale price, $29,362.50. I was a Hawaii resident for 51 Yrs and moved to Co Springs and changed residents as of Jan 1 2019, sold this home 03/22/2019.  My total long term capital gain of the sale was $26987.00 on my schedule D in 2019. 

After filing my final close tax for Hawaii i was sent a check for $29,362.50. How do I report this 1099-G on my 2020 Tax return? Would it be long term capital gain?

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1 Replies
Expert Alumni
Feb 5, 2021 2:54:56 PM

Ordinary income. Form 1099-G is officially for:

Federal, state, or local governments file this form if they made payments of:

  • Unemployment compensation.
  • State or local income tax refunds, credits, or offsets.
  • Reemployment trade adjustment assistance (RTAA) payments.
  • Taxable grants.
  • Agricultural payments.
  • received payments on a Commodity Credit Corporation (CCC) loan.

 

Based on your description, this sounds like a credit from the state -paid to you based on the sale. The ordinary income feels like a slap for your experience.

 

Entry, see Where do I enter a 1099-G for a state or local tax refund?