1099G does not agree with actual refund (not interest...)

Mar 05, 2010 1 Replies
T

I got refunds and 1099Gs for my 2008 and 2007 amended NYS returns. I got the refunds I expected, though the 2007 has some interest added on.



The problem is that the 2008 1099G is $458 too low, and the 2007 1099G is $400 too low. The 2008 I "think" involves a refundable education credit; that might be the case for 2007, though the fact that it is an amended return makes it harder to understand (the first time I paid tax, no refund). The 1099G say the amounts might not match for various reasons including refundable credits.



So, when it asks about refunds, do I put the 1099G amount, or the amount I actually got? If the 1099G amount, does the difference go anyplace else, or is it not subject to tax?



I know the interest it taxable, and I have entered that under interest.


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M

The 1099-G amount. You are only (potentially) taxed for federal purposes on the state tax refund because presumably you deducted it on Schedule A in a prior year. You never deducted the refundable credit amount, so it cannot be a taxable recovery of a previous deduction. There are other calculations that may result in some or all of the refund being not taxable (didn't itemize, took the sales tax deduction, subject to AMT, etc).

If the 1099G amount, does the difference go

I have never heard of refundable credits being subject to tax, not to say it couldn't happen somewhere or sometime.

-Mark Bole

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