Does first-year resident alien should file 1099-G ?

Forum|Forum|5 years ago
January 22, 2021
12 replies
108 views

Hi, I am a first-year resident alien (filed as a nonresident in TY2019, but filed as a resident from TY2020), and I got 1099-G from the TY2019 filing. I suffer an issue in filing my tax because there is no STANDARD Deduction in the 1040-NR-EZ file. Similar to my situation, I found this thread [link], but I wasn't sure whether it is for the previous tax year, or it also applies to the TY 2020. Specifically, I found the IRS Publication 525, and based on worksheet 2, I think I may also have a possibility to report the state tax return as taxable.

So, I post this question to figure out
(i) whether my 1099-G for the first-year resident alien (previously filed as a nonresident alien with 1040-NR-EX) is taxable or not and,
(ii) what is the right way to do with TurboTax? Here are some candidates that I can imagine:

- Do not attach 1099-G there (I don't think that's the right way, but who knows)

- Simply select 'I did standard deduction', although I have some itemize deduction due to the tax agreement between the US and my home country?

- Select, 'itemize deduction' and then 'please file all as taxable'

(I cannot go over with the itemized deduction option because I didn't even file Schedule A and others in the TY2019)

Best answer by pk_

@pk12_2 Thanks for your follow-ups. I think there are two different things to note.

(i) anyway, for the first-time 1040 filer as an R, the 1099-G due to the state tax refund is non-taxable. So, in what sense, I think the result would be non-taxable, to the best of my knowledge. However, I failed to find such option on the program (all right, I will manaully type one by one, then)

(ii) however, to make it correctly in TurboTax, I need to provide all other details, as you mentioned. The issue is *There are NO Schedule-A/B/2/etc* because I filed with 1040-NR-EZ, not 1040, in the previous tax year (the difference in line is acceptable, but more importantly, I don't have the NUMBERS for those fields). If it is okay to just leave all the mismatched parts as zero, then please let me know (I think it also needs to be guided by TurboTax, by the way).

@phdstudent , I understand your issue as follows -- you filed a form 1040-NR-EZ for 2019, you do not have a copy of this any more and did not file a schedule-A ( itemized deduction ). Assuming that you had XXXXX withheld for state taxes in 2019, and not having any other deductions ( charitable contribution, medical expenses etc. ), you probably reported XXXXX as your itemized deduction. The State then refunded you YYYY as over paid taxes. SDo for the purposes of reconciling form 1099-G from CA, you would need to enter your gross income ( from W-2 ), your State taxes withheld ( from W-2) while answering questions about the 1099-G. This should then result in non-taxability of the refund in 2020. I had to go search for a copy of the 2019 1040-NR-EZ to see the line where this was reported ( Line 11 ) -- this particular form has not been released for 2020 yet.

Does this solve your issue ?

pk_

Level 15

@phdstudent what was the 1099-G for ? Which country are you from? When did you enter this country with F-1 and what visa are you on currently? You earnings are from the school or OPT or grant or scholarships or what ? Is the 1099-G from the State ( and if so which state? Are you married and if so is it to a US citizen/Resident or NRA?

phdstudentAuthor

Level 2

@pk12_2

I entered from three years ago with an F-1 visa status, but TY2020 is 6th calendar year as J,F,M,Q visa holder, so I am a resident alien (passed the date test) from TY2020.

My earnings from school + CPT full time internship, and 1099-G for the state tax return from California TY2019 (from CPT internship); last year, I filed with 1040-NR-EZ because I was NR at that time.

pk_

Level 15

@phdstudent , when you enter the details in TurboTax, tell it that you have a 1099-G to report. This will then ask if you itemized in 2019 -- say yes. Thereafter it should do a computation to see if there is any "recoveries" --- you got the benefit of using XXXX for state taxes and actually ended up ( after refund ) paying YYYY and compare this to sales tax for your gross income etc. Hopefully none of it would be taxable to Feds -- the state does not tax the refund. TurboTax will all this for you -- not to worry