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Level 3
February 1, 2026
Solved

1099G question

  • February 1, 2026
  • 1 reply
  • 25 views

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.

    Best answer by ReneV4

    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

    1 reply

    ReneV4Answer
    Level 6
    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
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    matto1Author
    Level 3
    February 2, 2026

    Thanks. That is what I will do.