Do I have to include my state 1099G if NO refund ever received?

[pro88]

2019 tax refund from Fed held up because they incorrectly thought my spouse died in 2019. It was in 2020. After 8 months of calls & letter writing it was resolved. The refund came.

        I assumed my State refund was held up for same reason & that the Feds would let the State know everything was cleared up. Apparently not, because after a year I've heard nothing from the State. Yet they had the audacity to send me a 1099G!

Since I never rec'd my refund, do I still have to include the 1099G amount on my 2020 return?  Seems to me if I never received it then there's no reason to include it. Plus, maybe leaving it off the Return will finally get their money grubbing hands to contact me.

Your advice please.

---Thank you in advance...

[VolvoGirl]

If the state sent you a 1099G for the refund they think they sent it to you or applied it to something you owed.   You need to ask the state.   Or is it a 1099G for unemployment?  

And you might not need to include a 1099G state refund at all in your federal return in the first place.  A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sale tax.  You got a deduction benefit for it so now you have to include it as income. If you took the standard deduction it is not taxable and you don't need to report it.

You need to check your 2019 1040 line 9 to see which deduction you took.  How much is on line 9?

[rjs]

You have asked a lot of questions about a lot of different tax problems. And you have the additional complication of your wife having passed away. I suggest that it's time for you to visit a local tax professional to get help straightening out your tax situation.

[pro88]

Thanks you for your answer.

Unfortunately there isn't enough time to hire someone. Plus without my spouse income, my overall income has fallen by 60%. Now my expenses are far higher than my income, & I'll run out in a few years.

Therefore I just can't afford a professional tax expert to do them. The free tax prep services are booked solid.  

     I sent an email to Maryland about never receiving 2019's refund, adding that they had a lot of audacity to send a tax refund 1099G to me. I stated in the letter that since they never sent the refund I felt no need to report it. 

Perhaps THAT statement will get me some attention!

----Thanks anyway Champ rjs. I appreciate your effort to help me.

[Critter-3 · Accepted solution]

If you are not going to owe on the 2020 return then the Friday deadline is immaterial to you ... seek local professional help next week or upgrade to one of the LIVE options if you still need assistance.  

[rjs]

The state doesn't care whether you report your state tax refund. It doesn't affect your state tax return, only the federal. Not reporting it might get the attention of the IRS, but it won't get any attention from the state.

[VolvoGirl]

But you still should ask the state where it is.   Did they apply it to something you owed or apply it to 2020 as an estimated payment?   If they sent it to you,  they need to put a trace on the refund.  

Is the 1099G for the right amount on your tax return?   How were you suppose to get the refund?  By check or Direct Deposit?   Maybe your bank info was wrong.  Did you check all your bank accounts?