Received 1099-G for City Tax Refund, but did not get the actual payment (check). What should I do?

[danieluw]

Hi! I have this issue that I couldn't find an answer on. Hope someone could offer some advice! Thank you!

Both me and my wife's offices are located in a City where they collect City tax. During Covid, we worked at home for most of 2021. So we were eligible to apply for City tax refund for the period we WFH. In 2024, we both received 1099-G (for calendar year 2024), stating that we got the City tax refund. But neither of us actually got the money in 2024. We contacted the City, and they re-issued the new check (which we got in Mar 2025). They said that they will issue a new 1099-G and we should include that in the 2025 tax return. My question is, what do I do with the 2024 1099-G that we both received (but did not get the payment in 2024)? I'm afraid we will be in trouble if we simply don't report it in our 2024 tax return since we got the 1099-G. Is there a place in Turbotax where I can add a note explaining this to the IRS?

[KrisD15]

First question is, 

Did you Itemize Deductions on your 2023 tax year federal return?

If not, then the 1099-G needn't be reported (whether it is accurate or not).

If you did itemized for the 2023 federal return, I still would not report the 1099-G, there is a good chance the city will void the original 1099-G since they are going to reissue one to you for 2025. 

I also suggest you keep a copy of any correspondence from the city in regard to the refund.  

[danieluw]

Thank you for your reply. Yes, we did itemized deduction for our federal taxes in 2023. All correspondence from the City has been over the phone so there is no evidence. We have got the new check last week and deposited it. I will try to see if I can have them send me an email on this issue regarding the new 1099-G.