Virginia State Tax Refund

I received a form 1099-G from Virginia from a state tax refund. TurboTax asks for state tax refund information, but only allows 2011 as the most recent year on the pull-down menu. My 1099-G is for taxable year 2012. Do I report it on my 2012 Federal return, or 2013 Federal return?
  • I assume the 1099-G is for your 2011 refund correct?
  • Yes, it is for my 2011 Virginia taxes. Block 3 on the form reads Taxable Year 2012.
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So what you will need to do is report your 2011 Virginia state refund on your 2012 Federal taxes in the State and Local Refund area of TurboTax. The tax year of the refund would be 2011.

I hope this helps.
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    This really does not make any sense.  Why would I claim my 2011 state tax refund on my 2012 Federal refund and discount the 1099-G that I received for 2012?
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      Not sure what you mean by "discount," but you enter the 1099-G as income on your 2012 Federal tax return because you received the State tax refund in 2012 (although it was for the tax year 2011).

      Example:

      You paid state taxes in 2011, and got to deduct them on your 2011 Federal return. In 2012, you get a state tax refund. Thus, you deducted too much the prior year. This is why you must declare it as income on Federal in 2012.
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