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Level 2
posted Apr 4, 2022 3:17:55 PM

clarification needed: my wife and I forgot to enter a 1099-r in 2019

my wife and I forgot to enter a 1099-r in 2019 taxes, IRS sent a letter as we did forget it, and we paid the bill in full.  The error caused our state to go from a $1246 refund to a $1791 amount owed.  The federal was paid in 2021, the state was paid in 2021. mount.  In 2020, the 2019 State tax refund was treated as income, but do to the change, is actually no longer income, but a deduction.  What happens to 2020 FEDERAL, 2020 State,  2021 State and Federal ?  Only as it relates to the increase in taxes owed for 2019 but paid in 2020/2021.

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3 Replies
Expert Alumni
Apr 4, 2022 3:42:01 PM

Please clarify your question, what state are you filing?

 

Does your state tax your federal refund?

Level 2
Apr 4, 2022 4:07:14 PM

Wisconsin, 

We enter State & Federal amounts in both. I guess the bigger question is what roller over affect happens from the 2019 error, moving forward to 2020 & 2021

Expert Alumni
Apr 5, 2022 5:46:10 AM

So you paid back taxes (Federal and State) for tax year 2019 in 2021.

 

In 2021, on your Federal return, you can deduct the state tax paid if you itemize your deductions.

 

There is no rollover effect on your state return.