Hi,
I filed state taxes in Michigan last year and initially paid several hundred dollars with my state return.
Later on, after I received a new K1, I filed an amended return, on which I got a refund of a small portion of that money -- $66.
I have now received a "Substitute Form 1099-G" for the $66.
Should I be paying Federal Taxes this year on the $66, even though it was far less than my initial State Tax payment? Note, I did not itemize.
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No. If you do not itemize, the IRS does not usually tax you on your state refund.
However, you may still enter the amount of the 1099-G:
No. If you do not itemize, the IRS does not usually tax you on your state refund.
However, you may still enter the amount of the 1099-G:
Thanks. That is what I will do.
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