1099g stating refunds for 2015 do i put this on my taxes for this year?

[jjromanoski]

I received a 1099g tax document in the mail but it stats that the refunds for tax year 2015.  Do I put this on my 2016 taxes that I am currently doing?

[WayneCl]

If I've determined the refund is not taxable (itemized, but due to AMT adjustments, the benefit was nullified), my question is ...precisely what should I enter in TurboTax?  In the past, I thought I entered the 1099-G exactly, and then there was another field for me to report how much of that value is taxable.  This answer hints that you simply don't enter anything for the 1099-G and just keep it for my records.  I liked the old method, so that I could show I had properly accounted for the refund and determined it not-taxable.  Not entering it may cause IRS to assume I just forgot about it and trigger some review.  What is the right method today for entering a non-taxable 1099-G state tax refund?  No entry?  or Enter-and-adjust-to-zero?

[DS30]

Since you did itemize on your 2015 tax return, you should enter your 1099-G related to your state tax refund. Since I was not able to determine if you itemized based on your original question, I just added the information about not reporting the 1099-G because there would be no reporting requirement necessary related to this state tax refund for individuals who it not itemized on their prior year's federal income tax return.

You will just need to enter the 1099-G as you received it and the TurboTax system will determine if any portion is considered taxable in the current year based on your particular circumstances.

[WayneCl]

You're right!  After typing this question and returning to TurboTax, I "moved on" and the next thing it asked was about last year return and doing it the easy way or hard way, showing where to enter the refund in a worksheet that recalculated everything, had me enter the new tax and AMT values.  I looked at forms after that, and the refund had not be added to my income, so success.  Thanks!

[DS30]

You are very welcome and I wish you much success in all your future endeavors.

[DS30]

It depends.

State and local income tax refunds are taxable if the refunded tax was deducted in a prior year and you received a tax benefit from the deduction. Refunds are partially taxable if your itemized deductions last year exceeded your standard deduction by less than the amount of the refund.

So, if you didn’t deduct state and local income taxes last year, you don’t need to pay taxes on your refunds this year. For instance, if you didn’t itemize your deductions in 2015 (you took the standard deduction) then your state refund is tax free this year and does not need to be included on your 2016 tax return. (Just keep a copy of your 1099-G with your tax records.)

Please click Is My State Tax Refund Taxable and Why for more information

However, if you itemized on your 2015 tax return and included an itemized deduction for state income taxes, then you would need to include them on your 2016 tax return.

To enter your 1099-G for a state income tax refund in TurboTax Online (for TurboTax Online sign-in, click Here, select "Take Me To My Return") or Desktop, please follow these steps:

1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Wages and Income” ("Personal Income" in TurboTax Home & Business)
3. Next click on "jump to full list" or “I’ll choose what I work on”
4. Scroll down the screen until to come to the section “Other Common Income ”
5. Choose "show more", then State and Local Tax Refunds on Form 1099-G  and follow the onscreen instructions