Received a 1099 G/INT form from the State of South Carolina after Filing my Return. What do I do?
I have been using TurboTax online for a few years now. I love the service and it's so easy! This tax year was no different aside from the fact that my return will not be processed until Feb 14th due to the Itemized Deductions I had made. Anyway, I completed both my State and Federal tax returns on TurboTax.com last week. A few days after that I received a letter in the mail from the South Carolina Department of Revenue. It was a 1099 G/INT document and I am a little confused now.
Since I did not claim the standard deduction on my Federal return and chose to itemize deductions instead this form is now somehow relevant.
It states the following:
"If you itemized State income taxes paid as a deduction on Schedule A of your 2009 Federal individual income tax return, you must claim the total below on line 10 of your 2010 Federal Form 1040 for the IRS. Then, for South Carolina purposes, subtract the total on line F of the SC1040."
2009 INCOME TAX RETURN $753.00
Listed below is the amount of interest paid to you on refunds issued during calendar year 2010. This amount is considered taxable income and should be reported on your federal and state income tax returns.
INTEREST AMOUNT $.0.00
Everything after this line on the document is irrelevant to my concerns....
Now, moving forward, TurboTax imported my 2009 return into my 2010 return for simplicity purposes. I would imagine that TurboTax would be aware of such a law where my 2009 State Tax Refund would be considered "taxable income" and would make the necessary adjustments. However, I do not know this for sure.
Am I ok? Do I need to got back and change anything on my 2010 return which I had just completed? Or did TurboTax already take this into account and enter in the correct figures?
As I go back and look at what is filled in on the lines mentioned above from my 2009 and my 2010 Federal and State Returns there is a number there but not the number that is listed above as my 2009 INCOME TAX RETURN $753.00
I do not know what to do, I do not want to interrupt the processing time of my return but I want my taxes to be complete and correct.
Can someone please offer me some advice or even a straight up answer to these confusing questions?