Odd 1099-G situation

Forum|Forum|6 years ago
March 30, 2020
1 reply
11 views

When I did my state taxes last year, where I ended up owing because I don't actually work and have anything withheld, I decided to make a rounded-up estimated tax payment toward 2019 taxes so I wouldn't get into the same trouble. I also set myself up to make additional quarterly estimated payments. Oddly enough, the Commonwealth of Mass sent $187 of this payment toward 2019 taxes back to me. No explanation, but presumably because it was over and above what their algorithm said I would owe.

This was NOT a refund of 2018 taxes paid. However, this payment was reported on form 1099-G, as a refund or credit applying to 2018. When I input this in Turbo Tax as such, it says this amount is taxable, which is crazy. This was already my money, already taxed, which I handed to Mass. last April and they handed it back. How should I be entering this?

1099

Best answer by JotikaT2

If the amount was reported on a Form 1099-G listing 2018, it is being treated as a refund relating to your 2018 tax return. You still need to report it as such.

You will report this income in the Federal interview section.

Select Income & Expenses
Select Other Common Income
Select Refunds Received for State/Local Tax Returns
Proceed to enter the information and answer all of the questions

Your next screens will ask you for information regarding your 2018 return.  Based upon your entries, the program will determine if any of your state refunds are taxable.

JotikaT2

Answer

Employee Tax Expert

If the amount was reported on a Form 1099-G listing 2018, it is being treated as a refund relating to your 2018 tax return. You still need to report it as such.

You will report this income in the Federal interview section.

Select Income & Expenses
Select Other Common Income
Select Refunds Received for State/Local Tax Returns
Proceed to enter the information and answer all of the questions

Your next screens will ask you for information regarding your 2018 return.  Based upon your entries, the program will determine if any of your state refunds are taxable.

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JLK-MassAuthor

Level 2

Thanks for the clear and prompt reply. That echoes my understanding. I think I need to contact Massachusetts DOR and verify how they recorded this, and possibly get them to send an amended 1099-G. The good news between now and when I first asked my question is that I found out Mass. finally extended it's payment deadline to July15 like the rest of the country, so pressure is off. Best regards!