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why is 1099-G smaller than state income tax refund?

If the 1099-G for '08 is less than the state income tax refund I received in '08 for '07 taxes, which amount do I put on line 10 of form 1040? e.g. 1099-G says $900, but my refund was $2200. I read in pub 525 about the taxable portion of the income tax refund being limited to the amount over the sales tax deduction which I could have claimed in '07 instead of income tax deduction, but that doesn't apply to my case; the income tax deduction was about $6500 and the sales tax deduction would have been about $2000, so this $4500 is bigger than my $2200 refund - thus it seems I should ignore the 1099-G (NYS) and just put $2200 on line 10? Thanks in advance.

Reply to
rachelms79
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I can't imagine why the difference. Did you file in only one state?

ChEAr$, Harlan Lunsford, EA n LA

Reply to
Harlan Lunsford
< NY 1099-G is smaller than actual refund >

The 1099-G sent out by NY represents the amount of your NYS income tax refund that was due to excessive withholding. This is the amount that you would enter on the 1040 line 10.

Your actual NY refund may differ from the amount reported on the 1099-G due to a number of factors. The biggest difference is that the 1099-G does not include any refund that is NOT to due excess withholding, such as refunds due to refundable credits. And NY has a lot of them. There is a NY EIC, a NY child care credit (yes, it's refundable at the state level), the NY tuition credit (again, refundable), the NY child tax credit, the NY property tax / renter's credit, etc. None of these are the result of over-withholding, and so are not recoveries that would be taxable by the feds. It also works the other way - your 1099-G may be larger than your actual refund because part of your income tax refund was used to satisfy your sales tax liability, which is reported on the income tax form for your convenience. :)

Reply to
Don Priebe

Bingo, that's it. I have NY child tax credit, which when combined with my NY mandatory sales tax (e.g. $56) is exactly the amount of the difference between my '07 refund and my 1099-G. Thanks a million (or at least the few hundred this saves on my taxes). I think I'll go back and file amended for '07, when I had this exact same question (and no surprise, that was the year the NY child tax credit started) and just put my '06 refund (much larger than the 1099-G amount) on line 10; seems I could get a few hundred back from '07 too. Thanks.

Reply to
rachelms79

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