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Level 3
February 1, 2026
Solved

1099G question

Hi,

 

I filed state taxes in Michigan last year and initially paid several hundred dollars with my state return.

 

Later on, after I received a new K1, I filed an amended return, on which I got a refund of a small portion of that money -- $66.

 

I have now received a "Substitute Form 1099-G" for the $66.

Should I be paying Federal Taxes this year on the $66, even though it was far less than my initial State Tax payment? Note, I did not itemize.

    ReneV4Answer
    Level 8
    February 2, 2026

    No. If you do not itemize, the IRS does not usually tax you on your state refund.

     

    However, you may still enter the amount of the 1099-G: 

    1. Go to Wages & Income 
    2. selecting Other Common Income
    3. Selecting Refunds Received for State/Local Tax Returns
    **Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

    2 replies

    ReneV4Answer
    Level 8
    February 2, 2026

    No. If you do not itemize, the IRS does not usually tax you on your state refund.

     

    However, you may still enter the amount of the 1099-G: 

    1. Go to Wages & Income 
    2. selecting Other Common Income
    3. Selecting Refunds Received for State/Local Tax Returns
    **Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"
    matto1Author
    Level 3
    February 2, 2026

    Thanks. That is what I will do.