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Level 1
posted Oct 6, 2022 7:40:49 AM

1099G State Tax refund documents for 2019 & 2020 issued in 2021; 2019 already declared in 2020

Both 1099G State Tax refund documents for 2019 & 2020 were issued in 2021; The 2019 already declared in 2020 and applied to tax bill by TurboTax software.  How do I handle the new 1099G for 2019? 

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1 Replies
Level 15
Oct 6, 2022 8:36:36 AM

Did the 2019 tax refund affect your 2020 federal return?   Is it on 1040 Schedule 1 line 1?   If not there is nothing to do about 2020.  Or you may need to amend 2020 to take it off.  You report the refunds when you received them.  So they both go on your 2021 return now.

 

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 sales 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.