Your daughter does not have to enter the 1099-G or report the state refund unless she claimed an itemized deduction for state income tax on her 2015 federal tax return. She claimed an itemized deduction for state income tax if there is a Schedule A in her federal tax return, box 5a (Income taxes) is checked on the Schedule A, and there is an amount greater than zero on line 5 of the Schedule A.
If she did claim an itemized deduction for state income tax on her 2015 federal tax return, here's how to enter the 1099-G in TurboTax.
- Click the Federal Taxes tab.
- Click Wages & Income.
- Click "I'll choose what I work on" or "Jump to a full list."
- On the screen "Your 2016 Income Summary," scroll down to the section "1099-MISC and Other Common Income."
- Click the Start, Update, or Revisit button for "State and Local Tax Refunds on Form 1099-G."
No. If a dependent has income it would only go on their return if they are required to file. Why did she get a 1099G? Unemployment is taxable. And if you don't owe tax on it she can file to get any withholding taken out back.
Filing requirements for a dependent